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.