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Indus Motor Presses for 40% CKD–CBU Tariff Gap to Back Local Manufacturing

The pitch seeks to guide the Auto Policy 2026–31 in response to rising used‑car imports.

Overview

  • IMC asked policymakers to lock in at least a 40% tariff differential between locally assembled CKD vehicles and imported CBU units to maintain competitiveness and protect jobs.
  • The company urged curbs on used‑vehicle inflows, citing pressure on domestic production, large‑scale manufacturing growth and employment.
  • Industry voices at PAPS also called for action on baggage and gift schemes used for importing used cars, saying the practice harms industrial growth.
  • IMC advocated higher duties on parts already produced in Pakistan to strengthen local suppliers, develop skills and expand employment.
  • Citing underused capacity, IMC noted that 17 global automakers have built plants capable of about 500,000 vehicles with roughly one‑third utilization as used cars account for about a quarter of the market.