IMC to Increase Local Production by 20%

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Indus Motor Company (IMC) has planned to increase local production to cater to the rising demand of new cars in Pakistan. Talking to a group of journalists, CEO of IMC, Ali Asghar Jamali said:

“To meet the increasing demand, IMC is striving to increase production capacity by further 20% till April 2022.”

IMC enjoying handsome sales in Pakistan sold 57,731 units (including CKD & CBU) in FY 20-21, with a net sales revenue of Rs 179.2 billion in FY 20-21 as compared to Rs 86.2 billion in FY 20-19, rendering a 108% increase. The company earned a profit of Rs 12.82 billion in FY 20-21.

Yaris Corolla 1

The CEO of IMC revealed that about $30 million will also be spent on the expansion of the plant. This will be in addition to the $100 million investment which is exclusive for localized production of hybrid vehicles. Ali Asghar Jamali said that the infrastructure was ready for hybrid vehicles in the country and it would generate more jobs through localization. He added that hybrids cars would help the government achieve its macroeconomic and environmental goals. According to the CEO:

“Hybrid vehicles will save up to 50% fuel directly impacting the carbon footprint.”

Jamali further said that it was IMC’s ideal target to launch every new model with a 50% hybrid share in the future. Keep in mind Toyota’s decision to invest in hybrids came on back of relaxation of various taxes and duties the government announced in the Finance Act 2021, in order to encourage the local production of environment-friendly vehicles in Pakistan.

Related: Toyota to Assemble Hybrid Cars Locally

Under the said Finance Act 2021, only 4% customs duty on the import of parts for hybrid vehicles will be applicable, while only 3% customs duty will be there on the import of parts for plug-in hybrid electric vehicles. Furthermore, sales tax on import and local supply of HEVs is 8.5% on cars up to 1,800cc and 12.75% for cars from 1,801cc to 2,500cc.

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