- Indus Motor Company's CEO urges higher taxes on used imported cars to support the local auto industry.
- Increased duties on used cars are seen as crucial for industry growth amidst stable economic conditions.
- Positive performance was noted for the Toyota Corolla Cross, highlighting the success of localized parts.
Jamali highlighted that increasing duties and taxes on used cars is essential to benefiting the local auto industry, especially given the slightly improved economic activity, stable currency, and expected cut in interest rates. He expressed disappointment over the continued import of used cars, which has hindered the anticipated growth in demand for local vehicles. Despite a modest 28 percent increase in local car sales, the import of used cars surged by a staggering 711 percent in February alone compared to the same period last year.
The CEO cautioned that if this trend persists, it could lead to the closure of several vendors within the industry. He underscored the significant contributions of the local auto sector, noting that it has invested approximately $2.5 billion and contributed around Rs400 billion in taxes during FY2022. Furthermore, the industry has created about 2.5 million direct and indirect job opportunities.
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Jamali also highlighted the positive performance of the newly launched hybrid electric vehicle, the Toyota Corolla Cross, in its first quarter. Notably, the Corolla Cross boasts the highest percentage of localized parts in its category, exceeding 50 percent.
In conclusion, Jamali's advocacy for increased taxes on used imported cars reflects a broader effort to strengthen the local auto industry, promote economic growth, and safeguard job opportunities in Pakistan's automotive sector.
