Indus Motor moves ahead
Daihatsu Cuore' will be on roads next year
By AMANULLAH BASHAR
Sep 13 - 19, 1999
* Sponsors : Toyota Motor Corporation JapanToyota Tsusho Corporation JapanHouse of Habib Pakistan.
*Current Investment : Approx Rs2 billion
*Share Capital : Rs786 million.
* Production : Started from May 1993.
*Production Capacity: 20,000 units per year : expandable to 40,000
*Locally Manufactured Products :
1300 cc: Corolla XE, XEG, GL: 1600 cc
i) GLi H/T
ii) GLi A/T
iii) GLi M/T SE,
iv) GLi A/T SE 2000 cc : Corolla 2.0 D, 2.0 DG, 2.0 D Limited.
2.0 D Special Edition : Hilux 4X2 Single Cabin Pick-Up and Hilux 4X4 Single Cabin Pick-Up.
The Indus Motor Company will go into production of Daihatsu Cuore, 850 cc car sometimes next year.
The introduction of Cuore into Pakistan would offer an additional choice to the users of smaller cars as currently Suzuki Mehran is the only choice for the buyers in the segment of smaller cars.
The Daihatsu Cuore project, having a production capacity of 7,000 units per annum with an estimated cost of Rs 700 million, is on schedule.
This was disclosed by Tokuichi Uranishi, Director Toyota Motor Corporation and Farhad Zulficar, Managing Director and CEO of Indus Motor Company, in an informal chat, after Board of Directors meeting held in Karachi last week.
Currently there is a market for around 15,000 small cars and the lions share of this market so far is grabbed by the smaller segment of Suzuki cars in Pakistan. Farhad was of the view that the present market size for small cars has potential to grow to a level of 20,000 vehicles in the years to come.
He was confident that Daihatsu Cuore, by virtue of sound quality, would be strong enough to give a good competition to the existing cars of its size in the market.
Regarding the high price of cars in Pakistan, he pointed out that low volume of production, dollar-rupee parity and taxation regime are the price pushing factors in Pakistan. Replying to a question regarding export potentials of Pakistans automobile industry, Farhad Zulficar said that Central Asian States could possibly be a good market for Pakistans automobile sector. However, he added, export situation is not ideal due to absence of road communication between the two sides and the persistent political disturbance in neighbouring Afghanistan.
Highlighting the perfomance of the company, Farhad said that the company has achieved the deletion targets set by the Engineering Development Board. Similarly, the forthcoming Cuore car will pick the deletion programme from 40 per cent next year. Indus Motor's efforts for indigenization have also played an important role for the development of vendor industry in Pakistan.
Despite the fact that 1998-99 was a difficult year for Pakistan economically, Indus Motor Company was successful in achieving several landmarks. Notably, the company achieved full capacity utilization in one shift for the first time ever, and also achieved a record 10,000 units sales of locally produced Corolla and Hilux.
Consistent product diversification and product improvement also helped the company strengthen its market leadership position, with market share rising sharply from 41 per cent to 57 per cent in the 1300cc and above segments in which Corolla competes with other major brands. Hilux, in the Light Commercial vehicle range, continued to maintain over 90 per cent market share.
The financial results of 1998-99 reflect a pre-tax profit of Rs501.3 million and after tax profit of Rs251.2 million. Taking into consideration the financial results of 1998-99, a cash dividend of 20 per cent has been approved by the Board of Directors. Profitability in 1998-99 improved due to higher capacity utilization. The revenue contributed to the Government during the same period amounts to over Rs2 billion, in the form of sales tax, income tax and other duties.B