- IMC CEO stressed on well-structured import policy for the auto sector.
- The introduction of HEVs promises emissions reductions.
- The environmentally conscious initiative seamlessly aligns with the UN’s SDGs.
ISLAMABAD: In its bid to cut costs and emissions with a $100 million investment, Toyota car assembler Indus Motor Company (IMC) in Pakistan announced plans to launch locally made Corolla hybrid electric vehicle by next month Is. news Reported on Thursday.
The development was reported after the company’s Chief Executive Officer Ali Jamali announced IMC’s plans on Wednesday, underscoring the importance of Toyota’s massive $100 million investment for HEV production in Pakistan.
The investment will not only reduce import costs, but is also expected to result in annual savings of $37 million from 30,000 HEV units entering production. This announcement marks a significant moment in the country’s automotive sector, paving the way towards a more sustainable and eco-friendly future.
This environmentally conscious initiative seamlessly aligns with the United Nations Sustainable Development Goals with a specific focus on addressing climate change concerns. The introduction of HEVs promises emission reduction, creation of employment opportunities and increased export potential.
Jamali expressed serious concern about the various factors that are causing the prices of locally manufactured cars to rise. High taxation, inflation, import of used cars and currency instability were highlighted as major contributors to this growing issue.
Emphasizing the need for a well-structured import policy, Jamali stressed 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 detrimental impact on the sector. During the financial year 2022-23, more than 6,500 used cars were imported, and in the first three months of the current financial year, more than 7,500 units had already arrived in the country.
Jamali pointed out that these used car imports not only undermine the progress made in localization of car production but also hinder the possibility of further localization in Pakistan.
Despite these challenges, Jamali appreciated the recent relaxation in opening letters of credit (LC) for imports. These adjustments have facilitated the procurement of essential raw materials for the local industry, resulting in an increase in sales of original equipment manufacturers (OEMs) in passenger cars and light commercial vehicles in September 2023. Nevertheless, year-on-year comparison showed a 26% decline in sales.
Acknowledging the production and demand-related challenges faced by the auto industry, including temporary plant closures and reduced vendor capacities, Jamali lauded the government’s efforts in promoting localisation-driven policies.
He also expressed gratitude for the government’s support in reviving the auto industry and contributing to the country’s economic recovery. The CEO strongly reaffirmed Indus Motor Company’s commitment to overcome the current obstacles and lead the auto industry towards a more promising and sustainable future.