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Indus Motor Company (IMC) has urged the government to maintain at least a 40 per cent tariff difference between Completely Knocked Down (CKD) and Completely Built Up (CBU) vehicles in the upcoming Auto Policy 2026–31. The proposal by Toyota Indus aims to protect jobs, promote local manufacturing, and ensure competitiveness in Pakistan’s automotive sector.
IMC’s Chief Executive, Ali Asghar Jamali, shared these views at the Pakistan Auto Parts Show (PAPS) 2025. The show was held from November 14–16 at the Expo Centre Karachi, where IMC participated as a Diamond Sponsor.
Commitment to ‘Make in Pakistan’
Jamali said:
Our participation at PAPS 2025 reflects our dedication to the ‘Make in Pakistan’ vision.
He emphasised that Toyota Indus focuses on producing world-class vehicles locally while supporting job creation and industrial growth.
Jamali urged the government to implement stable and forward-looking policies that promote local manufacturing and protect the industry from the negative effects of used car imports.
He also highlighted the need to nurture parts manufacturing within Pakistan. Jamali suggested that imports of parts already produced locally should face higher import duties. This, he said, would strengthen the local parts industry, develop Pakistani skill sets, and create sustainable employment.
Concerns Over Used Car Imports
Jamali raised concerns about the rising import of used vehicles, noting that these imports threaten domestic production, Large Scale Manufacturing (LSM) growth, and employment generation.
Currently, 17 global automotive players have invested in Pakistan, establishing plants with a combined capacity of 500,000 vehicles, of which only one-third is utilised. Meanwhile, used cars make up 25 per cent of the market, which he said undermines investor confidence.
Jamali explained:
Insufficient capacity utilization also makes locally produced vehicles less competitive and more expensive for consumers.
Long-Term Vision & Achievements of Toyota Indus
Over the past 35 years, IMC has consistently invested in:
- Localisation of vehicle production
- Human skills development
- Job creation and economic growth through its vendor network and technical collaborations
The company continues to lead efforts in sustainability, innovation, and industrial advancement. Jamali said that the automaker believes in building a stronger Pakistan through localisation, innovation and continued investment in people and industry.
At PAPS 2025, IMC’s pavilion showcased the Toyota Yaris and Corolla Cross, highlighting the extensive localisation achieved in these models. The display reaffirmed IMC’s commitment to local manufacturing, industrial growth, and economic self-reliance. This comes in line with the national “Make in Pakistan” vision.
The event brought together Original Equipment Manufacturers (OEMs), policymakers, government stakeholders, and the public to showcase the latest advancements in Pakistan’s automotive industry.
IMC’s proposal underscores the need for government action to protect the local industry, enhance competitiveness, and boost sustainable employment in Pakistan’s automotive sector.
