ISLAMABAD: In its bid to cut costs and emissions with an investment of $100 million, Pakistan-based Toyota car assembler Indus Motor Company (IMC) plans to launch the locally produced Corolla hybrid electric vehicle by next month. What has been announced? The news was reported on Thursday.
The development was reported after the company’s Chief Executive Officer Ali Jamali announced the IMC plans on Wednesday, highlighting Toyota’s $100 million investment for HEV production in Pakistan. .
This investment will not only reduce import costs but also has the potential to achieve annual savings of $37 million when 30,000 HEV units enter production. The announcement marks a significant moment in the country’s automotive sector, charting a path towards a more sustainable and eco-friendly future.
This environmental initiative is seamlessly aligned with the United Nations’ Sustainable Development Goals, with a special focus on addressing climate change concerns. The introduction of HEVs promises reduction in emissions, creation of employment opportunities and better potential for exports.
Jamali expressed serious concerns over various factors that are driving up the prices of locally produced cars. High taxes, inflation, imports of used cars, and currency instability were highlighted as key contributors to this growing problem.
Emphasizing the need for a well-structured import policy, Jamali emphasized its importance in promoting the growth of the domestic auto industry. He revealed that the influx of used cars into the country has had a negative impact on the sector. More than 6,500 used cars were imported during the financial year 2022-23 and more than 7,500 cars have already entered the country in the first three months of the current financial year.
Jamali pointed out that these imports of used cars not only harm the progress in local car production but also prevent the possibility of further localization in Pakistan.
Despite these challenges, Jamali praised the recent relaxation in opening letters of credit (LCs) for imports. These adjustments have facilitated the procurement of essential raw materials for the local industry, resulting in increased sales by original equipment manufacturers (OEMs) in passenger cars and light commercial vehicles in September 2023. Sales down 26%.
Acknowledging the production and demand-side challenges facing the auto industry, including temporary plant shutdowns and reduced vendor capacity, Jamali praised the government’s efforts in promoting localization-based policies.
He also thanked the government for its support in reviving the auto industry and contributing to the country’s economic recovery. The CEO reiterated Indus Motor Company’s determination to overcome the current hurdles and lead the auto industry towards a more promising and sustainable future.