In a significant move within Pakistan’s automotive sector, Indus Motor Company Limited (INDU) has greenlit an investment of approximately Rs3 billion (around $10.76 million) aimed at bolstering the localisation of production.
The company, renowned for being the manufacturer of Toyota-brand vehicles in the country, disclosed this pivotal development in a notice submitted to the Pakistan Stock Exchange (PSX) on Thursday.
The announcement conveyed, “We are pleased to announce that the Board of Directors, in its meeting held on February 21, 2024, has approved an investment of around Rs3 billion to be made by the company for additional localization of parts and components of various existing vehicles.”
Indus Motor revealed that this investment aligns with the company’s overarching strategy to continually augment the localization of parts and components of vehicles manufactured within the country.
This move is poised to curtail the outflow of foreign exchange and foster growth within the local auto industry.
“The announced investment shall be made towards expenditure in plant and machinery, moulds, dies, equipment, and related expenses for localization of parts and components to be manufactured locally for various existing vehicles,” stated Indus Motor.
The timeline for this substantial investment is set to conclude by the third quarter of the calendar year 2025.
Indus Motor has previously indicated its commitment to increasing product localization. Notably, the company introduced its Hybrid Electric Vehicle (HEV) Corolla Cross last year, emphasising that 50 per cent of its value was localized.
CEO Ali Asghar Jamali highlighted that, after accounting for government taxes, over 50 per cent of the Corolla Cross’s value comprises localised parts, distinguishing it among other assembled hybrids in the country.
