Indus Motor Company to Launch First Hybrid Electric Car in mid-December
Indus Motor Company (IMC), the renowned Toyota car assembler to introduce the Pakistan-made Corolla Hybrid Electric Vehicle by mid-December, Ali Jamali, the CEO revealed on Wednesday.
Jamali said, “very soon” we will launch the Hybrid Electric Vehicle (HEV) while underscoring the significance of Toyota’s hefty $100 million investment in Pakistan’s HEV production.
This investment not only reduces import costs but is expected to yield an annual savings of $37 million as 30,000 HEV units enter production. This development marks a pivotal moment in the nation’s automotive sector, charting a path toward a more sustainable and environmentally friendly future.
This eco-conscious initiative aligns seamlessly with the United Nations’ Sustainable Development goals, with a specific focus on addressing climate change concerns. The introduction of Hybrid Electric Vehicles (HEVs) promises a reduction in emissions, the creation of job opportunities, and an enhanced potential for exports.
High Taxes and Financing Costs Impact the Industry
Jamali expressed grave concerns about various factors that have led to surging prices for locally manufactured cars. High taxation, inflation, the import of used cars, and currency instability were highlighted as key contributors to this escalating issue.
Emphasizing the need for a well-structured import policy, Jamali stressed its importance in nurturing the growth of the domestic auto industry. The influx of used cars into the country, he revealed, has had a detrimental impact on the sector. During the fiscal year 2022-23, over 6,500 used cars were imported, and in the first three months of the current fiscal year, more than 7,500 units had already made their way into the country.
Jamali pointed out that these used car imports not only undermine the progress made in localizing car production but also impede the potential for further localization in Pakistan.
Appreciate Relaxation in LC’s Opening
Despite these challenges, Jamali appreciated recent relaxations in the opening of Letters of Credit (LCs) for imports. These adjustments have facilitated the procurement of essential 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. Nevertheless, a year-on-year comparison revealed a 26 percent decline in sales.
Acknowledging the production and demand-related challenges faced by the auto industry, including temporary plant shutdowns and reduced vendor capacities, Jamali commended the government’s efforts in promoting localization-driven policies. He also expressed gratitude for the government’s support in revitalizing the auto industry and contributing to the nation’s economic recovery. Jamali emphatically reaffirmed Indus Motor Company’s commitment to surmounting the current obstacles and steering the auto industry toward a more promising and sustainable future.
