Byline: S. Kamal Hayder Kazmi
During the quarter ended September 30, 2019. Indus Motor Company Limited (IMC) combined sales of Completely Knocked Down (CKD) and Completely Built-up Units (CBU) units declined by 56 percent to 6,839 units against 15,560 units sold in the corresponding period previous year. The market share of Indus Motor Company in the overall market reached at approximately 20 percent for the period under review. No doubt, IMC has played a major role in the development of the entire value chain of the local auto industry. It is also proud to have contributed in poverty alleviation at the grass root level by nurturing localization. This, in turn, has directly created thousands of career opportunities and transferred technology to over 46 vendors supplying parts.
In the Company's quarterly report, IMC produced 8,036 units of vehicles for the three month period, registering a 49.7 percent decline, as against to 15,977 units produced in the corresponding period last year. Slow movement in sales volumes was observed in all segments, mostly on account of price impact because of additional custom duty rise and levy of FED, while rise in interest rates has reduced auto financing. Indus Motor Company remains engaged to the customer first philosophy that demands a high level of contribution, dedication and efficiency from all levels in IMC, to ensure utmost customer satisfaction throughout the supply chain. This is the cornerstone of the 'Toyota Way' and critical for the long-term success of the Company.
In the report also mentioned that the second quarter is always challenging for the auto industry because of the calendar year-end phenomenon as customers seek to defer purchase of cars and opt for a new-year registration. However, the second half of the fiscal year is predicted to have enhanced volumes based on better economic conditions mostly on account of income generated through agriculture sector. The imposition of FED on locally-manufactured vehicles and Additional Customs Duty and Custom Duty on import of raw materials needs to be revisited through the Government of Pakistan in order to attain sustainable volumes for the sector. This will not only support the auto sector, but will also result in higher overall revenue for the government. The Company is also a major tax payer and significant contributor to the Government's exchequer.
The Company observed approximately thirty Non Production Days (NPDs) during the quarter 2019 as...