Indus Motor pursues a stable automobile policy by restricting imports of used cars

Indus Motor Company (IMC) has suggested that the forthcoming Auto Policy 2026-31 should maintain at least 40% tariff differential between knock-down (CKD) and fully-built (CBU) vehicles to protect jobs and ensure competitiveness.

It was proposed by IMC Managing Director Ali Asghar Jamali while speaking at the Pakistan Auto Show (PAPS) held at the Karachi Expo Center from November 14 to 16.

“Our participation in PAPS 2025 reflects our commitment to the ‘Make-in-Pakistan’ vision to produce world-class vehicles locally while supporting job creation and industrial growth.

“We urge the government to maintain policies that promote local manufacturing and protect the industry from the negative effects of used car imports,” Jamali said, adding that there is a need for stable and long-term government policies to ensure the long-term viability of the local auto industry.

He emphasized that parts manufacturing in Pakistan should be nurtured and imports of parts already produced locally should be subject to higher duty to boost local industry, develop skill sets and create sustainable employment.

Jamali called for decisive action against increasing imports of used vehicles, which threaten domestic production, the development of large-scale manufacturing (LSM) and employment generation.

So far, 17 global automotive players have invested in Pakistan, setting up factories with a total capacity of 500,000 vehicles, of which only a third are in use.

In this situation, he added, where there was heavy investment alongside underutilization of capacity, the import of used cars, already 25% of the market, is undermining investor confidence. “Underutilization of production capacity also makes locally produced vehicles less competitive and more expensive for consumers,” Jamali explained.

For the past 35 years, IMC has invested in localization, human skills development, enabling the production of high-quality vehicles, job creation and economic development through its network of suppliers and technical partnerships.

“The company continues to lead the drive for sustainability, innovation and industrial advancement within Pakistan’s automotive ecosystem,” he emphasized.

Jamali said the automotive industry believes in building a stronger Pakistan through localization, innovation and continuous investment in people and industry. Through active participation in PAPS 2025, he added, IMC has reaffirmed its commitment to localisation, industrial development and sustainable economic development, in line with the national vision of ‘Make in Pakistan’.