Indus Motor Company Addresses Fiscal Challenges and Commits to Sustainable Practices in Annual Review

Karachi: Indus Motor Company Limited has faced significant hurdles due to economic contractions and regulatory challenges over the past fiscal year, impacting the automotive industry at large. According to information available from the Pakistan Stock Exchange (PSX), the company navigated these challenges through strategic adjustments and reaffirmed its commitment to sustainability and innovation.

The company highlighted the disparity in duties on locally manufactured versus imported vehicles as a key challenge. While new regulations favored local manufacturing by imposing higher duties on Completely Built Units (CBU), a simultaneous tax increase on local vehicles limited market growth potential. Despite these hurdles, the used car segment experienced growth, bolstered by favorable changes in duty structures introduced in the Finance Act 2024.

A landmark achievement this fiscal year was the launch of the Toyota Corolla Cross, Pakistan’s first Hybrid Electric Vehicle (HEV) with significant localized content. This move aligns with global trends towards cleaner, more efficient vehicles, and supports government initiatives aimed at reducing pollution and fuel imports.

The company also participated in Toyota Motor Corporation’s Global Skill Up Training initiative, sending 126 employees to Japan for extensive training. This program not only enhances employee skills but also contributes to Pakistan’s economic and professional development.

Looking forward, Indus Motor plans to continue its focus on sustainability by supporting the government’s incentives for electric and hybrid technologies. The company has also started exporting to Oceania, expanding its market presence and aiming for continued growth in the face of ongoing economic challenges.

The Board of Directors underwent re-election effective October 31, 2023, with a self-assessment to ensure governance best practices. The board also expressed gratitude to outgoing director Mr. Azam Faruque for his contributions during his tenure.

In conclusion, despite the challenging business environment, Indus Motor remains committed to delivering high-quality vehicles and contributing to the automotive industry’s progress, backed by the support of its shareholders, employees, and stakeholders.