Karachi – Indus Motor Company (IMC) has recommended that the upcoming Auto Policy 2026-31 maintain a minimum 40% tariff differential between completely knocked down (CKD) and completely built-up (CBU) vehicles. The proposal aims to protect local jobs, boost competitiveness, and strengthen domestic manufacturing.
IMC Chief Executive Ali Asghar Jamali made the suggestion during his address at the Pakistan Auto Show (PAPS) 2025, held at the Karachi Expo Centre from November 14-16. “Our participation at PAPS reflects our commitment to the ‘Make-in-Pakistan’ vision, producing world-class vehicles locally while supporting job creation and industrial growth,” Jamali stated.
He urged the government to adopt stable, forward-looking policies that encourage local manufacturing and shield the industry from the adverse effects of used car imports. Jamali emphasized the need to nurture local parts production, suggesting higher duties on imports of parts already made domestically to enhance skills, sustain employment, and strengthen the local auto industry.
Highlighting challenges, Jamali noted that 17 global automotive players have invested in Pakistan, establishing plants with a combined capacity of 500,000 vehicles, of which only one-third is currently utilized. “Rising imports of used cars, which already account for 25% of the market, undermine investor confidence and reduce competitiveness of locally produced vehicles,” he added.
Over the past 35 years, IMC has invested heavily in localisation, skills development, and high-quality vehicle production, contributing to economic growth through its vendor network and technical collaborations. Jamali reaffirmed IMC’s commitment to sustainable industrial advancement, innovation, and Pakistan’s ‘Make-in-Pakistan’ initiative, while calling for decisive measures to protect the local automotive sector.