Economic experts identified that healthy sales of vehicles in Pakistan during fiscal year 2016-17 enabled the Original Equipment Manufacturers (OEMs) and the parts suppliers to operate at maximum capacities to meet the rising demand. It is also calculated that the total of 213,119 domestically manufactured units were sold in Pakistan during 2016-17 as against to 217,679 units sold previous year, showing a 2 percent drop.
The sales growth appears dampened because of inclusion of 32,000 unit sales in previous year on account of Apna Rozgar Scheme. However, excluding the scheme from 2015-16, the growth in 2016-17 recorded a 15 percent rise which reflects the true market demand.
Indus Motors Company Limited (IMC) assertion is supported by the fact that 59,000 used vehicles landed in Pakistan under many schemes, up by 9 percent as against to 54,000 units imported last year. The growth in demand was also driven by introduction of the new locally produced models.
The IMC’s experts mentioned in a statement that the enhanced Corolla Altis Grande, the All-New Toyota Fortuner and the All-New Toyota Hilux REVO have been well-received by the consumer base in the relevant segments.
The Government Punjab’s scheme of easy car finance culminated in early 2016 had reflected in the 800cc and LCV Pickup segments as -25 percent and -15 percent, respectively. Since its inception, Indus Motors Company (IMC) has sold greater than 750,000 CBU/CKD vehicles and has demonstrated impressive growth, in terms of volumetric rise from a modest starting of 20 vehicles per day production in 1993 to 240 units daily at present through the development of human talent embracing the ‘Toyota Way’ of quality and lean manufacturing.
Over the years, the company has made large scale investment in improving its own capacity and in meeting customer requirements for new products. Presently, Corolla is the largest selling automotive brand model in the country and it also has the distinction of being No. 1 in Toyota’s Asian market.
IMC spends heavily in training its 2,800 plus workforce of team members and management employees and creating a culture of high performing empowered teams working seamlessly across processes in search of quality and continuous improvement.
During the period year ended June 30, 2017, IMC’s financial experts mentioned that the total sales of Toyota CKD and CBU closed at 0,586, -6 percent after reaching an all-time high last year of 64,584. The fall translates into a slight reduction in the market share from 29 percent to 28 percent.
Notwithstanding this, IMC managed to surpass its financial performance as against to the previous year. The finance managers also revealed that the company has recorded new records on the financial front with gross sales revenue of Rs135.68 billion, up by 3.53 percent as against to Rs131.05 billion for the year closed June 2016, while profit-after-tax increased 13.5 percent to Rs13.0 billion from Rs11.45 billion recorded for the year closed June 2016.
The surge in the revenue and net profit is chiefly attributable to the introduction of new models, change in sales mix and substantial improvement in trading business. Contribution to National Exchequer during the year, the Company contributed a sum of Rs39 billion to the national exchequer, which amounts to about 1 percent of the total revenue collection by the country during the year.
Since the Company’s incorporation in 1989, IMC’s contribution stands in excess of Rs318 billion. No doubt, the Company has played a major role in the development of Pakistan especially in the entire value chain of the local automobile industry and is proud to have contributed in poverty alleviation at the grass root level by nurturing localization that has directly created thousands of career opportunities and transferred technology to over 60 vendors supplying parts. The management is also a major tax payer and significant contributor to the GOP exchequer.
USED CAR MARKET
The used car market in Pakistan, is mainly unregulated. From forged documentation to delayed car payments, the used car market is rife with opportunities for exploitation. Potential sellers, apart from experiencing delay in payment and under-evaluation of their vehicle, also have a hard time finding suitable and genuine buyers.
The biggest issue is a complete lack of transparency in the vehicle evaluation process, and ultimately sellers are often cheated out of a fair price for their car.