- IMC is proud to dream of “Make in Pakistan” across the border.
- The deal comes at a time when Pakistan faces a shortage of inventory.
- The collaboration was described as an “accomplishment” for the IMC.
KARACHI: Pakistan’s largest automaker Indus Motor Company has signed an agreement with Toyota Egypt to export auto products starting July. news informed of.
“IMC has become the first auto manufacturer to open the doors to the global supply chain by signing an agreement with Toyota Egypt to export high-quality products from July 2023,” the auto-manufacturing company said in a statement on Tuesday.
The development comes at a crucial time when the country’s cash-strapped auto industry is grappling with inventory shortage amid import constraints and limited foreign exchange reserves.
“The first batch of semi-processed raw materials to be shipped to Toyota Egypt will mark the beginning of an era from an export perspective by any OEM.” [original equipment manufacturer] The Toyota automaker in Pakistan said, “There are plans to move in this direction in Pakistan.”
According to the company, the partnership with Toyota Egypt is the first step towards meeting the requirements set out under the Auto Industry Development and Export Policy (AIDEP) 2021-2026.
“This is a significant milestone that will not only enhance IMC’s export capabilities and serve as a testament to IMC’s quality standards but will also contribute significantly to the growth of Pakistan’s growing auto industry.
“Seeing the dream of ‘Make in Pakistan’ transcend international boundaries is a great moment, not only for us but for the country as well. Being a part of Toyota’s global supply chain is part of IMC’s mission to see and strengthen Pakistan on the world map. The commitment is an affirmation of the overall economy,” said Ali Asghar Jamali, CEO of IMC.
This collaboration is a milestone for IMC and a significant step towards establishing its global footprint. This is the first time for any local automotive part to be part of the Toyota global supply chain.
“Besides, the move will strengthen connectivity between Africa and Pakistan and boost business ties under the government’s “Look Africa” policy,” he added.
Jamali shared that the company is looking forward to further enhance its capabilities with the collaboration. “We plan to go even further to establish Pakistan’s auto industry as a symbol of reliability and quality on the world stage.”
Pakistan’s low foreign exchange reserves, rupee devaluation and record high inflation have collectively affected auto sales in the country. Almost all auto manufacturers had to halt production at times due to import restrictions. On June 23, 2023, IMC announced its fifth plant closure of the year over “insufficient inventory levels”.
According to the central bank, it has lifted import restrictions in the country – a move that appears to have pleased the International Monetary Fund to approve a $3 billion short-term arrangement. With no restrictions on imports, IMC plans to boost exports of its auto products.