The top automaker in Pakistan, Indus Motor Company (IMC), declared a three-billion rupee investment to boost local production of parts and components for its Toyota-badged automobiles.
The company, which is a joint venture between Toyota Motor Corporation and House of Habib, stated that the investment was a part of its effort to lessen its reliance on imports and boost the local auto industry.
The company said in a statement to the Pakistan Stock Exchange (PSX) that it was “pleased to announce that the board of directors, in its meeting held on February 21, 2024, has approved an investment of approximately Rs3 billion to be made by the company for additional localization of parts and components of various existing vehicles.”
The company would be able to “reduce outflow of foreign exchange and promote the local auto industry” as a result of the decision, according to the statement.
“Expenditure in plant and machinery, molds, dies, equipment, and related expenses for localization of parts and components to be manufactured locally for various existing vehicles” is what the announced investment is intended to cover.
The intended investment is scheduled for completion by the third quarter of 2025. The carmaker has already made suggestions about expanding its localization of its products.
Increasingly, Indus Motor is localizing parts and components for its cars, which include the well-known Corolla models. The Corolla Cross, the company’s first hybrid electric car, debuted last year and was claimed to be 50% locally valued.
At the time, Ali Asghar Jamali, CEO of Indus Motor, claimed that the Corolla Cross stood apart from other assembled hybrids in the nation because to its higher proportion of local components.
Due to decreased demand for automobiles brought on by rising interest rates, high inflation, and slower economic growth, Pakistan’s auto industry has been struggling.
The weakening of the rupee in relation to the US currency has also hurt the industry, driving increasing import costs and forcing automakers to hike prices.
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