Indus Motors Political Effect on Pakistan Essay Example for Free

Indus Motors Political Effect on Pakistan EssayPolitical EffectsThe government today has a key influence in the organizations, who be working in the country in order to gain maximum profit out of minimum cost, because of that government make new policies against the auto industries in Pakistan Toyota Indus motors is the factor affecting the auto industry in Pakistan .The Indus motors companys plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Production of Toyota corolla vehicles in august plunged to 2,627 units from 2,914 units in July 2012. however, sales in august improved to 2,800 from 2,464 units in July 2012. There are some political points which are affecting the company.Import dutyBanned CNG kitsLaw and orderImport dutyEvery overseas Pakistani, subject to Fulfillment of eligible conditions as position down in the import trade and procedure order 2000 can import a vehicle from abroad. The import policy often revised from time to time usually from after every financial year. The government has announced the import duty on auto industries with the rate of 100% tax.Banned CNG kits error correction code (economic coordination comity) approved the ban on import of CNG cylinders and conversation kits in the wake of current gas shortage in the country. The installation of new CNG kits in vehicles go out also be banned, which affects the companys sale figures resulting in decreasing of auto sales in Pakistan for certain time because of the Pakistani consumers invade in CNG, after some time of banishment of the CNG consumers started to convert their perception against CNG and started to purchase the new vehicles without CNG kit in it.