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The Indus Motor Company (IMC) CEO, Ali Asghar Jamali has put forward the recommendation that the government should impose a charge of Rs100,000 per vehicle over every car owner who books a new car and sells it in the first six months of purchase.

While talking to journalists at the Pearl Continental Hotel in Bhurban, IMC CEO Jamali said that due to this action, the need of an agent or a second dealer gets diminished.

Also Read: Do electric cars have a future in Pakistan?

Progress in Automobile Industry

While mentioning the uprising of the auto industry of Pakistan, he said that the industry is expected to increase remarkably in the next five years. Moreover, the chairman said that by the year 2022, Pakistan is expected to produce 500,000 vehicles per year.

It was said that during the last three years, the sharp increase in the total economy of the country has resulted in increased demand of locally manufactured and used vehicles.

The latest economy reports show that the automobile industry currently imports 40,000 used vehicles per year. Subsequently, it amounts to 15% of the total sales of the industry which is 283,000 vehicles. However, the import of used vehicles still remains the biggest threat to the country’s automobile industry.

Former Pakistan Association of Automotive Parts and Accessories Manufacturers Chairman, Aamir Allawalla said, while the import of used vehicles serves as a big threat to the local industry. The launch of new vehicles in the coming years will prove to be a much better competition, he opined.

Quick Read: Pak Suzuki increase the prices of its cars up to Rs160,000

Cars Per People

A group of analysts have calculated the number of cars per people in the country. According to their results, India is ahead of Pakistan. In Pakistan, the ratio is of 16 cars per 1,000 people while India has 18 cars per 1,000 people. This rate is expected to increase to 20 cars per 1,000 people in the coming years; as there has been an increase in the growing middle-class families in the country.