Toyota plans to launch locally made hybrid car in Pakistan by the end of the year

• IMC CEO emphasizes on well-structured import policy for automotive sector.
• The introduction of HEVs promises to reduce emissions.
• Ecological initiative perfectly aligned with the UN SDGs.

ISLAMABAD: In its bid to cut costs and emissions with a $100 million investment, Indus Motor Company (IMC), Toyota’s car assembly plant in Pakistan, has announced plans to launch the local Corolla hybrid electric vehicle by next month. The news reported on Thursday.

The development was reported after the company’s CEO Ali Jamali announced IMC’s plans on Wednesday, highlighting the importance of Toyota’s massive $100 million investment in HEV production in Pakistan.

The investment will not only reduce import costs but also has the potential to generate annual savings of $37 million as 30,000 HEV units enter production. This announcement marks a pivotal moment in the country’s automotive sector, charting a path towards a more sustainable and environmentally friendly future.

This eco-friendly initiative aligns perfectly with the United Nations Sustainable Development Goals, with a particular focus on addressing climate change concerns. The introduction of HEVs promises reduced emissions, job creation and enhanced export potential.

Jamali expressed serious concerns over various factors that have led to a rise in prices for locally made cars. High taxation, inflation, importation of used cars and currency volatility were pointed out as key factors in this escalating issue.

Stressing the need for a well-structured import policy, Jamali emphasized its importance for the development of the domestic automobile industry. He revealed that the influx of used cars into the country has had a negative impact on the industry. During the fiscal year 2022-23, over 6,500 used cars were imported and in the first three months of the current financial year, more than 7,500 units had already entered the country.

Jamali pointed out that these imports of used cars are not only undermining the progress made in localizing car production but also hindering the possibility of further localization in Pakistan.

Despite these challenges, Jamali appreciated the recent relaxations in the opening of letters of credit (LC) for imports. These adjustments eased the supply of key raw materials for the local industry, resulting in a boost in sales for original equipment manufacturers (OEMs) in passenger cars and light commercial vehicles in September 2023. However, a year-on-year comparison revealed a decline of 26 % on sales.

Acknowledging the production and demand-related challenges facing the auto industry, including temporary plant shutdowns and reduced production capacity, Jamali praised the government’s efforts to promote localization-based policies.

He also expressed his gratitude for the government’s support in revitalizing the automobile industry and contributing to the country’s economic recovery. The CEO emphatically reaffirmed Indus Motor Company’s commitment to overcome the current hurdles and lead the automotive industry towards a more promising and sustainable future.