Toyota to launch the locally-built hybrid car in Pakistan by year end. In a strategic move aimed at reducing costs and emissions, the Indus Motor Company (IMC), Pakistan’s Toyota car assembler, has unveiled plans to invest $100 million in the production of locally-made Corolla Hybrid Electric Vehicles (HEVs).
The announcement, made by IMC’s Chief Executive Officer, Ali Jamali, signals a significant milestone in Pakistan’s automotive sector and underscores the company’s commitment to environmental sustainability.
The investment, set to launch next month, holds the promise of not only slashing import expenses but also generating an estimated annual savings of $37 million as 30,000 HEV units are slated to enter production.
As Toyota to launch locally-built hybrid car in Pakistan by year end, this forward-thinking initiative aligns seamlessly with the United Nations’ Sustainable Development goals, particularly in addressing pressing concerns related to climate change.
By introducing HEVs, Pakistan is set to witness a substantial reduction in emissions, the creation of job opportunities, and a boosted potential for exports.
Jamali highlighted several challenges faced by the domestic auto industry, including high taxation, inflation, and the influx of used cars into the market, all of which have led to escalating prices for locally manufactured vehicles.
He emphasized the urgent need for a well-structured import policy to safeguard the growth of the local auto industry, citing the detrimental impact of over 6,500 imported used cars during the fiscal year 2022-23.
This surge in imports not only undermines local car production but also hampers further localization efforts in Pakistan.
Despite these challenges, Jamali expressed his appreciation for recent relaxations in the opening of letters of credit (LCs) for imports, which have facilitated the procurement of essential raw materials for the industry.
He commended the government’s initiatives in promoting policies that encourage localization and expressed gratitude for their support in revitalizing the auto industry, a move that significantly contributes to the nation’s economic recovery.
The CEO acknowledged the hurdles faced by the auto industry, such as temporary plant shutdowns and reduced vendor capacities, while commending the government’s efforts in promoting localisation-driven policies.
Despite these obstacles, Jamali reiterated IMC’s unwavering commitment to overcoming challenges and steering the auto industry toward a more promising and sustainable future.
As Pakistan prepares to embrace the era of eco-friendly transportation, IMC’s investment stands as a beacon of hope, illuminating the path towards a greener, more economically vibrant future for the country’s automotive landscape.
