Indus Motor Company (IMC), the assembler of Toyota vehicles in Pakistan, is set to launch the Corolla Hybrid Electric Vehicle (HEV) locally by December. CEO Ali Jamali announced a substantial $100 million investment in domestic HEV production, aiming to reduce import expenses and generate an annual saving of $37 million as production scales to 30,000 units.
This move is a significant stride in Pakistan’s automotive industry, aligning with the United Nations’ Sustainable Development Goals to combat climate change. The introduction of HEVs is expected to decrease emissions, create job opportunities, and open export possibilities.
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Despite these positive steps, Jamali expressed concerns about the rising costs of locally manufactured cars, attributing them to factors like high taxation, inflation, and the influx of imported used cars. He stressed the need for a structured import policy to foster domestic auto industry growth. Jamali acknowledged recent improvements in import-related restrictions, such as the easing of letters of credit (LCs), benefiting the acquisition of essential raw materials.
However, challenges persist, including a 26 percent year-on-year decrease in sales. Jamali recognized government support in promoting policies for local production but highlighted obstacles like temporary plant closures and reduced vendor capacities. He reiterated IMC’s commitment to overcoming challenges, leading the industry toward a brighter, more sustainable future.