Urges govt to promote local manufacturing, protect industry from used car imports
KARACHI:
Indus Motor Company (IMC) has proposed that the upcoming Auto Policy 2026-31 should maintain at least 40% tariff difference between completely knocked down (CKD) and completely built-up (CBU) vehicles to protect jobs and ensure competitiveness.
It was proposed by IMC Chief Executive Ali Asghar Jamali while speaking at the Pakistan Auto Show (PAPS) held at the Karachi Expo Centre from November 14-16.
“Our participation at PAPS 2025 reflects our commitment to the ‘Make-in-Pakistan’ vision to produce world-class vehicles locally while supporting job creation and industrial growth.
“We urge the government to maintain policies that promote local manufacturing and shield the industry from the negative impact of used car imports,” Jamali said, adding that there was a need for stable and forward-looking government policies to ensure long-term sustainability of the local auto industry.
He emphasised that parts manufacturing in Pakistan should be nurtured and imports of parts already produced locally should be subject to higher duties to strengthen the local industry, develop skill sets and create sustainable employment.
Jamali called for taking decisive measures against rising imports of used vehicles, which threaten domestic production, large-scale manufacturing (LSM) growth and employment generation.
So far, 17 global automotive players have invested in Pakistan, establishing plants with a combined capacity of 500,000 vehicles, of which only one-third is utilised.
In that situation, he added, where major investments existed alongside underutilised capacity, the import of used cars, already 25% of the market, undermines investor confidence. “Insufficient capacity utilisation also makes locally produced vehicles less competitive and more expensive for consumers,” elaborated Jamali.
Over the past 35 years, IMC has invested in localisation, human skills development, enabling high-quality vehicle production, job creation and economic growth through its vendor network and technical collaborations.
“The company continues to lead efforts for sustainability, innovation, and industrial advancement within Pakistan’s automotive ecosystem,” he stressed.
Jamali said that the automaker believes in building a stronger Pakistan through localisation, innovation and continued investment in people and industry. Through active participation at PAPS 2025, he added, IMC reaffirmed its dedication to localisation, industrial growth and sustainable economic development, in line with the national vision of ‘Make in Pakistan.’
