IMC posts record sales,uses 100 percent production capacity
KARACHI: The year 2015 has been a positive year for the automobile sector in general and Indus Motor Company (IMC) in particular as it has posted record sales and growth. The company has utilised 100 percent production capacity, and it has been a positive year overall for the automobile sector,
KARACHI: The year 2015 has been a positive year for the automobile sector in general and Indus Motor Company (IMC) in particular as it has posted record sales and growth. The company has utilised 100 percent production capacity, and it has been a positive year overall for the automobile sector, said Ali Jamali, Chief Operating Officer, Indus Motor Company while talking to the journalist on Wednesday.
He attributed the growth of the auto sector to the overall improved economy due to better government policies. Reduction in the interest rate has also boded well for the sector, as auto finance has picked up.
IMC posted healthy growth in FY 2014-15 and added Rs32 billion in the national exchequer, which makes 1.2 percent of overall tax collection. Currently auto financing is contributing around 30 percent of vehicle sales, he added.
“The agri and taxi schemes are good initiatives by the government, which also posed a positive impact on the local auto industry sales. We are hopeful that other OEMs products such as IMC’s Hilux will also be included in such schemes,” said Jamali.
“The company mainly benefited from strong demand generated by the new 11th generation Toyota Corolla launched in July 2014 as the company outperformed and stayed well ahead of competition throughout the year, clocking in 51,398 units,” he added.
Jamali said that the company’s profits have increased due to the surge in demand of automobiles as additional 22,917 units were sold in the reported year.
It is to be noted that IMC has announced a net profit after tax of Rs 9.1 billion for Financial Year 2014-15 against the Rs 3.9 billion posted for previous fiscal.
He said that the combined sales of Toyota CKD and CBU vehicles set a new annual record of 57,387 units for the company, and the record sales volume achieved during the year resulted in a 32 percent market share for FY 2014-15.
IMC COO said in order to fulfil market demand and reduce delivery time cycle the company operated its manufacturing facilities at 100percent capacity throughout the year undertaking overtime and working off Saturdays to minimise the impact of time lag on customers. We are making 220 Corollas every day. Average delivery time is reduced from 3 to 4 months to 1.5 to 2 months.
Despite huge demand, it has been 1.5 years; we haven’t increased the price of the new Corolla. In March 2014 dollar was at 96 which is now at 104. We are absorbing this increase and not passing it on to the consumer.
“We have generated 500 employment opportunities at IMC only. The impact is 10 times more on allied industries and vendors. We are anticipating that upcoming auto policy will be based on two principles, Long term vision and Made in Pakistan. These two factors will not only boost the economy but impact the economy by creating cycles of employment and contribution to GDP,” Jamali added.
“It is a good omen that many international players are looking forward to enter the Pakistani market, and by formulating industry friendly policies, the government can soon put the country in the league of leading automakers in the world,” he said.
Government must realise that the import policy is damaging the local industry and hampering new investments. A huge number of imported used cars are the reason that no new investor is coming in general and in small cars segment in particular. He said withholding tax under the new tax regime is a hindrance. Depending on car size, tax filers have to pay Rs10,000 to Rs250,000 on vehicles of 650cc to 3000cc respectively, whereas non filers will pay Rs10,000 to Rs450,000.