Automotive

Ali Asghar Jamali: Leading Indus Motor Through Pakistan’s Auto Shift Every car buyer in Pakistan has asked the same question: why are our cars so expensive? We look at international prices, we hear stories about build quality, and we feel a constant sense of being overcharged. It’s a frustration I’ve shared myself. The Technology Bet But in my recent conversation on the Digitales podcast with Ali Asghar Jamali, the CEO of Indus Motor Company (Toyota Pakistan), I realized the story is far more complex, and the real culprit isn’t who we think it is.Ali provided a lesson on the anatomy of the Pakistani auto industry, and the first lesson was about its massive economic footprint. An auto plant isn’t just an employer for the few thousand people on its payroll. He revealed a staggering statistic: every single working day, Indus Motors alone purchases 27 to 28 crore rupees worth of parts from local suppliers across Pakistan. Following the Money This isn’t just a factory; it’s the engine of a vast ecosystem that includes parts manufacturers, logistics companies, dealerships, and service centers, creating a multiplier effect that supports tens of thousands of families.This brought us to the industry’s biggest fight, a battle happening in plain sight against what Ali describes as a subsidized and technically illegal competitor: the used car import market. In a shocking revelation, he stated that after Suzuki, the second-largest market share in Pakistan belongs not to Honda or any other local assembler, but to imported used cars. This “shadow industry,” he argues, thrives on a system that uses personal baggage schemes, drains foreign exchange, and operates with a significant tax advantage over local manufacturers who have invested billions in the country.But the most eye-opening moment came when we tackled the price tag. Following the Money: Part 2 Why does a new Toyota Fortuner cost over two crore rupees? The answer isn’t greed or inefficiency. Ali broke it down with striking clarity: on a Fortuner with a sticker price of 2.25 crore, a jaw-dropping 1.4 crore rupees are purely government taxes. Why This Matters The actual price of the vehicle,covering all parts, salaries, logistics, and profits,is around 90 lakhs. A 77-lakh Corolla has about 35 lakhs in taxes baked into its price.Suddenly, the narrative shifts. The problem isn’t the car; it’s the fiscal policy. Ali argues that a significant reduction in taxes would spur a massive increase in demand,potentially 50% or more,which would more than offset the tax-rate cut through sheer volume, all while creating more jobs and economic activity.We also covered the immense challenges of turning Pakistan into an auto exporter, from the lack of local raw materials like automotive-grade steel to the absence of strategic Free Trade Agreements (FTAs) that would make our cars competitive in key markets.This conversation completely reframed my understanding of the auto industry. It’s not just a story about cars; it’s a story about industrial policy, tax reform, and the fight to build a sustainable manufacturing base in Pakistan. To get the full, myth-busting breakdown, I urge you to listen to the complete episode. Frequently Asked Questions Who is Ali Asghar Jamali? Ali Asghar Jamali is a prominent figure in automotive featured on the DigiTales podcast with Faizan Sayed, where they discussed their career, insights, and vision for Pakistan’s future. What business insights did Ali Asghar Jamali share on DigiTales? On DigiTales, Ali Asghar Jamali shared candid perspectives on building businesses in Pakistan, including the challenges of operating in a developing market and specific strategies that drove their success. What is DigiTales podcast? DigiTales is a podcast hosted by Faizan Sayed, CEO of East River Digital, featuring weekly conversations with Pakistan’s most influential leaders across business, culture, policy, and technology. The show covers real stories and hard-won insights from CEOs, artists, politicians, and entrepreneurs. Guest: Ali Asghar Jamali Ali Asghar Jamali is the CEO of Indus Motor Company (Toyota Pakistan), a position he has held since January 2017. A Harvard Business School AMP graduate, he also serves as Chairman of the Pakistan Automotive Manufacturers Association (PAMA). Host: Faizan Sayed Faizan Sayed is the founder of DigiTales Podcast and CEO of East River Digital, a performance-led marketing agency with offices in Pakistan, KSA, and the US. Each week, he interviews Pakistan’s most influential leaders across business, culture, and policy. Category Automotive (1) Entertainment (1) Recent Post Ali Asghar Jamali: Leading Indus Motor Through Pakistan's Auto Shift Aamer Naseer on Building Startups in Pakistan's Ecosystem