Toyota Pakistan’s Rs. 3 billion Investment to Locally produce Auto Parts
Indus Motor Company Limited (INDU) is making significant strides towards enhancing the localization of parts and components for its vehicles with a substantial investment of around Rs. 3 billion. This strategic move, approved by the Board of Directors, underscores the company’s commitment to reducing the outflow of foreign exchange and bolstering the local auto industry.
The investment will primarily focus on expanding the localization of various existing vehicle models, aligning with the company’s long-term objectives.
It encompasses expenditures in plant infrastructure, machinery, molds, dies, and associated expenses essential for localizing parts and components production. The targeted completion by the third quarter of 2025 indicates a diligent timeline for implementation.
By augmenting localization efforts, Indus Motor Company aims to foster self-sufficiency within the local automotive sector while maintaining global quality standards. This initiative not only contributes to mitigating foreign exchange outflows but also promotes economic resilience and job creation within Pakistan.
Apart from its role in assembling, progressive manufacturing, and marketing Toyota vehicles, the company’s position as the sole distributor underscores its pivotal role in advancing the automotive landscape in Pakistan.
Toyota Pakistan Sales Jacked Up by 304%
After months long sales and production crisis, for IMC (Toyota Indus Motors), there is a beacon of optimism shining through the clouds of prevailing challenges, as there are strong indications of a significant rehabilitation.
As per PAMA report (Pakistan Automotive Manufacturers Association), Toyota Pakistan’s sales are increased by staggering 304%, selling 3,570 units last month compared to 684 vehicles in Dec’23. The company sold Toyota Indus sold 1,207 units of Corolla and Yaris and 132 units of Fortuner and Hilux.
Earlier, IMC observed strong sales contraction, back-to-back production shutdowns in the face of low inventory. Pakistan’s dwindling economic graphs nudged the SBP (State Bank of Pakistan) to impose the import restrictions which in turn took a toll on Pakistan’s car industry.
What’s your take regarding Toyota Pakistan’s robust investment strategy? Drop your thoughts in the comments section.
Finally! The current import restrictions are causing them to think along lines they should have done decades ago.
However…
“The investment will primarily focus on expanding the localization of various existing vehicle models, aligning with the company’s long-term objectives.”
This raises a few questions. This statement implies that IMC are concentrating only on the current models sold in Pakistan which are old generation models and out of date globally. What about futureproofing their investment? Any country which gets local manufacturing must do so while realizing that every 5 years on average, models change globally. Will this “new investment” by IMC cater for that? Or, going by what can be understood from the statement, does it mean that they will only make parts for the current models and then proceed to sell them for the foreseeable future? I hope that is not the case.
Lastly… 3 billion PKR. That is around 10.7 million USD. So in thirty years of their esteemed existence, they couldn’t think to do this sooner? 10.7 million USD is not that big of an amount. They could spend “100 million USD” to bring in “50% localization” for the Corolla cross (which is already the outdated model because the new one was just released). Yet investing 10.7 million USD (or less if done earlier) to increase localization FOR ALL their locally assembled models was just a bit too far them or too difficult and it took them this long to get it done. 🤔 Riiight… 🙄 😆
But, OK. Its good that they are finally doing it. The only niggle is, whether they will futureproof their “grand investment” OR only make parts for the current crop of outdated models and then proceed to sell only them forever. 🤷♂️ Their long term objectives seem murky… 🤔
@Ali Khan
And what on earth would you know, you cannot even differentiate between three Land Cruiser versions. No wonder that Pakistanis have become a laughing stock.
@Khurram
And you who thinks wearing/not wearing seat belts in your old corolla effects fuel consumption and that all JDM cars are all rusting away due to bad quality (even though they come from an island nation surrounded by water) are a paragon of knowledge.