No Job Cuts Says IMC

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Indus Motor Company (IMC) has announced that there will be no layoff of employees despite a slowdown in production. According to an IMC spokesperson:

 “The country is going through an economic slowdown and the overall market has remained volatile. This has indeed been a great struggle. The factors largely contributing to this include rupee depreciation, reduction in car financing, increase in federal excise duties (FED) and higher input costs. Yet, we have decided not to go for layoffs despite the hard times. We are absorbing this financial crunch.”

The IMC spokesman mentioned that the rupee has depreciated over 31.6% while the government has also imposed 7% additional conveyance duties, 3% additional sales tax on all imports and 2.5% to 7.5% FED on various engine capacity vehicles.

Related: Honda and Toyota to Observe Plant Shutdowns in October Also

All this is having an adverse impact on the auto sector and has resulted in a major decline in sales. Of the total cost of a vehicle, 40% comprises the taxes and levies imposed by the government. The decline in sales will result in a substantial decline in tax collection from the auto sector, he added.

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1 year ago

The local cars assemblers always critical of ‘reconditioned cars’ liberal imports,under different schemes. The stake holders in second hand cars imports, are big Show Rooms Owners, Big Black Money Holders,and ofcourse the Customs which got big chunks of grants from super rich importers. Such short sighted policies at the outcome greatly depress the local manufacturers cars sale. And this is the prime reason for halt in production. It’s upto FBR & Ministry of Commerce, to assess the National interests in marketing new cars, or selling used cars. Some of these used cars have very bad defects, to the surprise of… Read more »

Muhammad Muaaz Muhammad Yaseen

U mean a local car bare bone, I mean no airbags, no ABS, no built quality, and outrageous prices??? If they policy makers have banned the imports just because they want the local industry to grow then why FED across all car segments? There is no sense if u r trying to find any, they are just balancing what they want and their local assemblers want, don’t expect fool-proof decisions from them