IMC shrugs off competition from new entrants

KARACHI: Indus Motor Company Limited (IMC), an automaker known for its high-end Toyota brand, ruled out an impact of new entrants in the auto industry on its market share, an analyst said on Friday.

IMC told a briefing of equity analysts that the new comers would largely hit lower-priced segments, including used imported cars. Analyst Hamdan Altaf at Taurus Securities Limited said Indus Motors foresees only a slight impact along the way.

French company Renault this week signed an agreement with the UAE’s Al-Futtaim Automotive to assemble and distribute its vehicles in Pakistan. Renault sees Pakistan as a fast-growing market with a 10 percent annual growth rate.

Earlier, South Korean firms, Hyundai and Kia, also showed their interest to collaborate with Nishat Group and Younus Brothers to set up manufacturing plants. German Audi already approached the Board of Investment through its local authorised dealer with a proposal to start an original equipment manufacturer plant.

Altaf said the management is expected to pass on the impact of rupee depreciation on the consumers. “The management also foresees a slight increase in Hilux off-takes before the election to cater for special orders,” he added.

“It said Fortuner would be receiving a new diesel engine option by 2018,

declining to comment on the same engine being launched for its Hilux models.” IMC told the meeting that the first phase (paint shop debottlenecking) of its $40 million expansion project would come online by April-May 2018, Currently, Indus Motors has a production capacity of 54,800 units, which are likely to reach 60,000 a year.