LAHORE: Pakistan’s automobile industry is likely to double the annual car assembling to half a million units within the next 10 years owing to positive economic policies, an official has said.
“If the present optimism persists we foresee the market to touch 350,000 units of demand by 2025, and if new entrants step in the demand may go up to 500,000 units,” Ali Asghar Jamali, chief operating officer (COO) at Indus Motors Company (IMC) told media at the launching ceremony of Toyota Fortuner and Hilux Revo.
“The estimates are based on consistent economic policy, improved auto financing and lower interest rates.” Currently, local auto industry assembles 0.28 million cars a year.
“Pakistan is one of the fastest growing economies in the region and that is a good omen for the auto industry,” Jamali said. On Auto Policy 2016, he said anything encourages local market is welcomed. Generally, the policy is friendly but if the incentives, such as tax holiday proposed for the new entrants, are also granted to existing players the country will have immediate benefits.
About the impact of proposed free trade agreements on the local auto industry, he said negotiations should be finalised, considering protection to local industry. “We believe the local market should be given priority under a slogan of ‘Make in Pakistan’,” he added.
