Indus Motor to stop manufacturing Coure before FY13- Alfalah Securities Limited

Karachi: The CEO of Indus Motor Company, Mr. Parvez Ghias has stated that the company would stop manufacturing Coure before June 30, 2012 on account of its high cost of production.

According to Alfalah Securities, the CEO has also opposed the government’s decision to allow import of vehicles at 5% duty under the Completely knocked down (CKD) condition which would damage the business of local manufacturers and has proposed the government to offer income tax holidays or provide land on reduced rates in order to attract new investors. Moreover, he said that the government is also reviewing the proposal to reduce the import duty of vehicles in Complete Bullet Unit (CBU) condition from 50% to 25% which would further hit the automobile industry. The sales of Indus Motor Company and other automobile manufacturers have remained low after the announcement of Federal budget FY12 on account of having conflicting reports about the Federal Excise Duty (FED) and Sales tax.