Auto sector sees significant recovery
The auto sector's profitability is expected to face further obstacles due to the imposition of a 10% super tax. photo: file
The local automobile sector witnessed a positive trajectory in the nine months of FY 2024-25, supported by macroeconomic stabilisation and easing of financial conditions. The auto industry is advocating for policy support to boost local manufacturing, enhance affordability, and increase localisation.
Indus Motor Company (IMC) has reported a solid performance during the nine months ended March 31, 2025, with total sales of Completely Knocked Down (CKD) and Completely Built Up (CBU) units increasing by 57% to 21,890 units, up from 13,922 units in the corresponding period last year, the company announced on Monday.
It attributed the surge to a recovery in consumer demand and the continued success of models like the Corolla Cross and Toyota Yaris, supported by timely feature enhancements and model updates.
The net sales revenue rose to Rs145.53 billion, from Rs98.23 billion in the previous year's same period. The company's profit after tax increased considerably to Rs16.55 billion, as compared to Rs9.41 billion from the corresponding last year.
This improvement reflects higher sales volume, stable input costs driven by a relatively favourable exchange rate, and effective cost management initiatives, including increased localisation.
IMC CEO Ali Asghar Jamali said, "IMC has delivered a good performance in the nine months of FY24-25, due to a decrease in interest rates, increasing consumer confidence and stable foreign exchange rates. The ongoing trend reinforces the need for a policy review, particularly the rationalisation of depreciation allowances on used car imports, to ensure a level playing field for local assemblers and improve government revenue streams. IMC remains committed to innovation, customer satisfaction, and contributing to the sustainable growth of the country's automotive sector."
He said used car imports still represent a significant portion (29%) of the local auto market by value in the current financial year.
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