Toyota Indus Motor Company (IMC) has stated that domestic manufacture of hybrid electric vehicles (HEVs) would commence shortly in Pakistan. In a formal statement to the PSX, the firm stated that it will invest $100 million in the domestic manufacture of HEVs over the next three years.
Toyota IMC also stated that the funds would be used to upgrade the local assembly facility in Karachi’s Port Qasim, which will allow for increased localization of auto parts.
The firm also appreciated the government’s recent duty and tax reliefs for manufacturers in order to promote local manufacturing and sales of environmentally friendly automobiles.
Honda Atlas Cars Limited (HACL) is also rumoured to be contemplating a major investment in the local manufacturing of HEVs in the near future.
This is a major step because Toyota offers a wide range of HEVs, including the Toyota Prius and Toyota Corolla Cross, both of which are already available in Pakistan as Completely Built-Up (CBU) units.
Several additional imported HEVs, such as the E160 Toyota Corolla, Toyota C-HR, Toyota Aqua, and a few others, are quite popular in Pakistan despite their high prices.
Toyota’s HEVs being assembled locally would not only enhance the company’s dividends, but it will also inspire other automakers to offer their HEV lines in Pakistan, fostering a robust and competitive localised HEV market.