[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Indus Motor Company (IMC), the assembler of Toyota vehicles in Pakistan, is preparing to unveil the locally-produced Corolla Hybrid Electric Vehicle (HEV) in December. IMC’s CEO, Ali Jamali, emphasized the company’s significant $100 million investment in domestic HEV production during discussions with journalists.
This considerable investment aims not only to reduce import expenses but also to achieve an estimated annual saving of $37 million as HEV production scales up to 30,000 units. This move represents a noteworthy development in Pakistan’s automotive industry, steering it toward a more environmentally friendly and sustainable direction.
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Aligned with the United Nations’ Sustainable Development Goals, particularly those addressing climate change, the introduction of HEVs in Pakistan is anticipated to lower emissions, create job opportunities, and open avenues for exports.
Jamali expressed concerns about the escalating costs of locally manufactured cars, attributing them to factors such as high taxation, inflation, the influx of imported used cars, and currency fluctuations. He underscored the need for a structured import policy to foster the growth of the domestic auto industry. Jamali highlighted challenges, including over 6,500 used cars imported in the fiscal year 2022-23 and more than 7,500 in the first three months of the current fiscal year, hindering progress in local production.
Despite these obstacles, Jamali acknowledged the recent relaxation of restrictions on letters of credit (LCs) for imports, aiding in obtaining essential raw materials and boosting sales for original equipment manufacturers (OEMs) in passenger cars and light commercial vehicles in September 2023. However, there is still a 26 percent decrease in sales in a year-on-year comparison.
Jamali recognized challenges related to production and demand in the auto industry, including temporary plant closures and reduced capacities of vendors. He appreciated the government’s support in promoting policies that encourage local production, contributing to the nation’s economic recovery. Jamali reiterated IMC’s commitment to overcoming challenges and leading the auto industry toward a brighter and more sustainable future.[/vc_column_text][/vc_column][/vc_row]
