Ali Asgher Jamali, Senior General Manager of Indus Motor Company, in a meeting with journalists here on Monday said ‘’heavy import of used cars, which in the FY 2011-12 is likely to touch the alarming figure of 40,000 units, is another dent to local car manufacturing industry, therefore, misuse of used car policy should be stopped.
This objective can be achieved even through policy changes, for example registration has to still remain in the name of importers for at least two years, he said, adding that the policy should be reverted back to 3 years and 1pc depreciation with maximum depreciation cap of 36pc to discourage imports.
Similarly, prices increased in various items, being used in manufacturing, have been affecting the industry severely.
For example, he said, the prices of steel have been increased by 15pc since 2009, while the price increase of other items since the said year include aluminium by 54pc; polypropylene by 122pc; US dollar by 22pc; Japanese Yen by 70pc; Thai bhat by 32pc; minimum wages by 75pc; electricity by 71pc and gas by 44pc.
This whole phenomenon of price increase, rupee depreciation, and raise in utilities has resulted in sharp increase in input cost while the price increase in IMC products has been nominal i.e. 16pcc in case of IMC’s XLI in the last 42 months, since August 2008, he added.