Indus Motors Political Effect on Pakistan

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Toyota Indus Motors

Political Effects

The government today has a key influence in the organizations, who are working in the country in order to gain maximum profit out of minimum cost, because of that government make new policies against the auto industries in Pakistan Toyota Indus motors is the factor affecting the auto industry in Pakistan .The Indus motors company’s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Production of Toyota corolla vehicles in august plunged to 2,627 units from 2,914 units in July 2012.however, sales in august improved to 2,800 from 2,464 units in July 2012. There are some political points which are affecting the company.

·Import duty
·Banned CNG kits
·Law and order

Import duty:

Every overseas Pakistani, subject to Fulfillment of eligible conditions as laid down in the import trade and procedure order 2000 can import a vehicle from abroad. The import policy often revised from time to time usually from after every financial year. The government has announced the import duty on auto industries with the rate of 100% tax.

Banned CNG kits :

ECC (economic coordination comity) approved the ban on import of CNG cylinders and conversation kits in the wake of current gas shortage in the country. The installation of new CNG kits in vehicles will also be banned, which affects the company’s sale figures resulting in decreasing of auto sales in Pakistan for certain time because of the Pakistani consumer’s interest in CNG, after some time of banishment of the CNG consumers started to convert their perception against CNG and started to purchase the new vehicles without CNG kit in it.
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