Toyota Japan raises stake in IMC: New Corolla model launched

KARACHI  - Toyota Motor Corporation (TMC) Japan has raised its stake in Indus Motor Company (IMC) to 25 per cent after acquiring 12.5 percent shares from local market. This was stated by the Chief Executive Officer of IMC Pervez Ghias while responding to a question at a press briefing along with director sales IMC, Raza Ansari here Wednesday. He said that TMC has purchased 7.5 percent from local shareholders and 5 percent from House of Habib. He pointed out that Toyota Japan looks at Pakistan positively and see it as a promising future market with a large population and growing income. "This is the reason why TMA has raised its stake in Toyota Pakistan. Pakistan was the largest Toyota car selling country in Asia during 2007 with more than 35,000 units. However, he said that overall sale of automobiles in the country was declined by 8 percent due to falling rupee, restriction on auto financing, high steel cost and import of used cars. But, the market share of IMC has increased in June 2008 as the company sold 50,802 vehicles compared to 50,557 in June 2007. Ghias said that auto manufacturers and vendors have invested billions of rupees to expand production capacity. He said auto sector contributes about 5 percent to the total national revenue. Ghias said that automobile industry needs withdrawal of 5 percent federal excise tax on auto sale introduced in the federal budget 2008-09. Similarly, we need removal of 35 percent L/C margin on the import of CKD besides we demand withdrawal of 10 percent Federal Excise Duty on royalty and technical fee. Our Staff Reporter adds: Indus Motor Company has launched the new model of Corolla. Bringing the new car in the market, Pervez Ghais said, "After 9/11, the automobile industry grew tantamount times ahead and the peak volume reached 254 at rapid growth till July 2007. Since October last year, there has been a market drop rate which today stands at 214 in July 2008. The slow down occurred due to many political reasons that led to the economic turmoil in the auto sector."

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