Karachi September 7 2021: Toyota is starting local production of Hybrid Electric Vehicle (HEV) in order to avail benefits given by the Federal Government in recently announced budget, as per information shared by the Indus Company at Pakistan Stock Exchange (PSX).
Based on the incentives provided against certain taxes and duties as announced by the government of Pakistan through Finance Act 2021 and subsequent SROs, Indus Motor has evaluated and plans to invest an estimated aggregate amount of USD 100 million. This amount will be spent over the period of next three years for the local production of Hybrid Electric Vehicle in Pakistan.
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The announced investment shall be made towards plant upgradation and extensions, localization of parts or components and production preparation or assembling of the first Hybrid Electric Vehicle by the company at its plant at Port Qasim.
A delegation from Indus Motor Company led by the Vice Chairman, Mr. Shinji Yanagi and Chief Executive, Mr. Ali Asghar Jamali, met with the Prime Minister today at the Prime Minister’s Office to announce the new investment. The meeting was also participated by Mr. Yoichi Miyazaki, CEO for Toyota Asia, via video message. Members of the Cabinet including the Federal Minister for Industries, Mr. Khusro Bakhtiar, Federal Minister for Energy, Mr. Hammad Azhar and Finance Minister, Mr. Shaukat Tareen also attended the meeting. The Ambassador of Japan to Pakistan, HE Mr. Kuninori Matsuda, also graced the occasion.
Yoichi Miyazaki, CEO for Toyota Asia said, “We are excited to announce this new investment for bringing Toyota’s latest generation Hybrid Electric Technology to our customers in Pakistan. Today’s investment announcement is testament to our strong commitment to Pakistan and trust in the Government. We appreciate the Government’s policies to encourage low carbon mobility solutions. Toyota has always strived to offer the most appropriate technologies and products to meet the country’s customers’ diverse demands. This choice will allow us to move towards carbon neutrality and electrification at scale. We believe that each kind of electrified vehicle has its role and based on our global experience we are certain that Hybrid Electric Vehicles have the greatest potential to achieve mass electrification and effectively reduce CO2 emissions at the earliest timeframe, contributing to the Prime Minister’s noble vision of a “Clean and Green Pakistan”.
Prime Minister Imran Khan whilst appreciating Toyota’s investment announcement said, “Toyota/Japan has remained the most committed partner for Pakistan even in the most testing times. We value our relationship and Toyota’s trust in Pakistan’s economy and welcome this new investment for Environment Friendly Hybrid Electric Vehicles. Indus Motor Company is a wonderful example of how global companies can grow successfully here in Pakistan”.
The Ambassador of Japan to Pakistan, H.E. Mr. Kuninori Matsuda, whilst welcoming the decision said, “The Embassy of Japan is confident that the new investment decision will take the economic ties between Japan and Pakistan to the next level. It is a symbolic milestone as we approach the 70th anniversary of the establishment of our diplomatic relations, in 2022. I hope that the Japanese auto technology will play a key role to realize the new Pakistani automobile development plan. The Embassy of Japan also pledges to continue to make its maximum effort to create a supportive business environment for Japanese businesses here in Pakistan, in cooperation with the Government of Pakistan”.
Mr. Ali Asghar Jamali, Chief Executive, Indus Motor Company Ltd. Said, “Today’s investment announcement represents IMC’s strong commitment towards our community as we contribute tangibly towards making Pakistan less vulnerable to Climate Change. Toyota has multiple electrification technologies, and among those, we believe Strong Hybrids are a practical and sustainable solution for achieving mass electrification. We are thrilled to bring the most efficient 4th Generation Hybrid Electric Vehicle to our customers which will help reduce carbon footprint of our vehicles, in line with the vision of our Honorable Prime Minister, Imran Khan”.
IMC has contributed massively towards establishment of the local automobile industry here in Pakistan, by creating its complete value chain with over 60 Part Makers making over PKR 200 million worth of parts every working day, 50 independently owned dealerships providing aftersales service to customers and employing over 60,000 people directly and indirectly, working across Pakistan.