CEO Indus Motor Announces to Launch Local Hybrid C SUV Car

Staff Report

Chief Executive Officer (CEO) Indus Motor Company Ali Asghar Jamali has announced a Local Hybrid C SUV Car, with a commitment to combat climate change and support sustainable development goals.

He emphasized that Pakistan, despite being a minimal contributor to climate change, faces its consequences.

The introduction of locally made Hybrid Electric Vehicles (HEVs) is intended to mitigate emissions and align with the United Nations’ Sustainable Development goals.

Jamali underscored the significance of HEVs not only for environmental concerns but also for their potential economic benefits, such as boosting employment and export opportunities.

He noted that various challenges, including high taxation, inflation, used car imports, and currency instability, have led to higher prices for domestically produced cars in Pakistan.

During a discussion with journalists in Islamabad, Jamali highlighted the need for a well-planned import policy to support the growth of the local auto industry, citing the negative impact of the heavy import of used cars on the industry.

He revealed that over 6,500 used cars were imported in the financial year 2022-23, with more than 7,500 units imported in the first three months of the current fiscal year. Local Car Assemblers Face 26% Sales Slump in October 2023

Importing used cars not only counteracts the progress achieved by the local auto industry in localization but also hampers the potential for further localization in Pakistan.

Jamali acknowledged the positive impact of recent relaxations in the opening of Letters of Credit (LCs) for imports, which facilitated the procurement of raw materials for the local industry.

He noted that Original Equipment Manufacturers (OEMs) experienced improved sales of passenger cars and light commercial vehicles in September 2023 due to these relaxations, although there was still a 26% decline in sales on a year-on-year basis.

Regarding Toyota’s investment in Pakistan, Jamali mentioned that Toyota had invested $100 million in producing HEV vehicles, which is expected to reduce Pakistan’s import expenses and save approximately $37 million annually with 30 thousand HEV units.

While discussing the auto industry’s challenges, including production and low-demand issues leading to temporary plant shutdowns and reduced vendor operating capacities, Jamali commended the government for its localization-driven policy.

He expressed gratitude for the government’s efforts to support localization, recognizing its potential to aid the auto industry’s recovery and contribute to the overall economic revival.