LAHORE:
“Non-production days (NPDs) at Indus Motor Company (IMC) plants are due to the huge influx of imported used cars which affected the demand of locally produced cars negatively,” said IMC Chairman Ali S Habib while answering shareholders’ concerns on downbeat production schedule during the company’s 23rd annual general meeting held on Saturday.
Shareholders vowed to raise their voices at the relevant forums against hostile policies to help the local automobile industry to flourish and continue being a major contributor to the national economy.
Habib, speaking on the occasion, mentioned that amid all economic and political challenges, the business environment for automakers and parts supplier remained uncertain as the industry continuously appealed for logical reasoning by decision makers, keeping in view the greater national interest. Compounded with depreciation of the rupee against major currencies and other inputs, inflation, etc impacted the operations negatively.
While answering to a query about launch of new models, he said that launching a new model is equivalent to setting up a new company as it requires not only a complete product development and marketing strategy but also new parts and equipment which was time consuming and required huge capital investment. Moreover, the current policies in the auto industry are unfavourable for investment in manufacturing.
During the meeting, automaker’s financial and operating performance for the year ended June 30, 2012 was reviewed and audited accounts were approved by the board. The sales and production of Toyota and Daihatsu brands for the year ended June 30, 2012 were 55,060 units and 54,917 units respectively compared to last year’s 50,943 units and 50,759 units respectively. The company’s sales revenue increased to Rs77 billion, up 25%; with the after tax profit of Rs4.3 billion, against Rs2.7 billion achieved during the year ended June 30, 2011. Earnings per share increased to Rs54.7 compared to Rs34.9 in the preceding year.
For the period, the total dividend of Rs32 per share was declared compared to Rs 15 per share dividend paid during the same period last year.
The shareholders appreciated the management for company’s performance and dividend payout in testing times for the industry and expressed hope that the company will continue to perform better in the coming years if the government reconsiders the policies in favour of local industry as per global norms.
Published in The Express Tribune, September 30th, 2012.
COMMENTS (12)
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I think IMC might pay heed to the voices raised by their consumers in the above comments. They should be focusing on improving quality and rationalizing profits instead of spending revenues on getting published ads and favourable news stories in the press.
Why a below par, cut down version car locally produced cost more than a similar across the border or anywhere else in the country. Locally assembled cars dont even pay custom duty to the tune of 200%-400%.
But Pakistan should stop importing the used cars, only allow a brand new cars but also lower the custom duty for new cars from other countries. Only this will create a open market for cars. Local assemblers who are crying for not competing with used imported cars, will then face the real music!
That's what you deserve for producing crap at inflated prices and having your monopoly over those prices.. The world's a free market my friends, either be good enough to be competitive or close your good for nothing plants down.. Imported cars over these scrap metals any day!!
If Honda can introduce newer version of civic in Pakistan then Toyota can do that too. But maybe it will take some more time for local manufacturers to realize that their golden days are over and they would have to face some competition. Produce better cars and maybe offer few more products.
So much for Pakistan's mantra of "trade not aid" -- in case you didn't know it "trade" implies free markets which frown on protectionism.
Its a funny business. The car "manufacturers" basically take your money...and in 3-6 months make a car out of it
Hey Editor! Why is it that you do not publish my comments. Its been 3rd time that I comment and they simply dont show up.
Car prices in Pakistan are really crazy! I think if this article is correct then it's for the best since it would end the monopoly of a few in the industry and bring down prices & maybe taxes in the long run.
What kind of cars are these local manufacturers producing? If these supposedly brand new cars cannot compete with 5 year old imports, then they have to blame themselves. Why should the buyer be hostage to local car manufacturers and its policies? Enough of giving protection to local industry when the local industry is not only expensive but produce substandard cars
Automobile is the only industry in Pakistan that can make more money even their units sales dropped... and still they blaming imported cars rather making a competition.
Pakistan auto mobile industry is exploiting consumer. they take 6 months to complete an order and quality still remains poor. importers should be allowed to import cars