BREAKING – Toyota to Assemble Hybrid Cars Locally
In a major development for Hybrid Electric Vehicles (HEVs) and Toyota Hybrid Cars lovers in Pakistan, Toyota Indus Motor Company has announced to invest 100million dollars for their local assembly. As per a notification to Pakistan Stock Exchange (PSX), the company said it is taking the step after certain taxes and duties have been reduced in Finance Act 2021. “The company will invest this amount in next 3 years,” the notification read.
It further said that the investment would be for plant upgradation and extension, localization of parts/components and production preparation of the first HEV.
Tax Benefits
Under the Finance Act 2021, the government announced only 4% Customs Duty (CD) on the import of parts for hybrid vehicles. The parts include battery pack and its parts, cooling system for battery packs, sensor for hybrid vehicle battery voltage, inverter assembly with a converter (Power control unit), electric motor and generator for transaxle assembly, battery charging system, hybrid system control unit and junction box.
Meanwhile, the government announced a 3% CD on the import of parts for Plug-in Hybrid Electric Vehicle.
Meanwhile, Sales Tax on import and local supply of Hybrid Electric Vehicles is:
- 8.5% on cars up to 1800cc
- 12.75% for cars from 1801cc to 2500cc
What Toyota Offers in Hybrid Segment
The company is already selling CBU units of Toyota Prius and Corolla Cross. Meanwhile, it can offer locally-assembled Toyota Aqua, Toyota Corolla 12th Generation, Toyota C-HR, and E160 Toyota Corolla. Undoubtedly, Toyota Pakistan is one of the companies which got most benefits from the tax reductions for hybrid cars. The company has long advocated for the local assembly of hybrid vehicles and this new Auto Policy (2021-2026) has met their demand.
This will surely be a massive step for the local car market because the HEVs are considered the future. With the local assembly, these cars will be affordable for the consumers, hence, more choices.
What do you think of this announcement? Share your thoughts in the comments section.