Indus Motor Company Limited, trading under the banner of Toyota Indus, has unveiled plans for a significant investment of approximately Rs 3 billion aimed at bolstering the localisation of parts and components for its existing vehicle lineup. This strategic move underscores the company’s steadfast commitment to advancing the local auto industry while curbing foreign exchange outflows.
The decision was ratified during the Board of Directors meeting held on February 21, 2024, and is a pivotal component of the company’s overarching strategy to steadily enhance the localisation of vehicle components. By ramping up domestic manufacturing, Toyota Indus aims to fortify the indigenous automotive ecosystem and foster economic growth within Pakistan, as outlined in the notice submitted to the Pakistan Stock Exchange (PSX).
The earmarked investment will be channelled towards the procurement of plant and machinery, molds, dies, equipment, and associated expenses necessary for localising parts and components across various existing vehicle models. This infusion of funds underscores Toyota Indus’ unwavering dedication to nurturing a robust local supply chain and minimising dependency on imports.
The ambitious investment programme is slated for completion by the third quarter of the calendar year 2025, signalling Toyota Indus’ proactive stance towards accelerating the pace of localisation efforts. By localising a broader spectrum of vehicle components, the company aims to enhance operational efficiency, streamline production processes, and contribute to the growth trajectory of the domestic auto sector.
Toyota Indus’ commitment to bolstering localisation initiatives aligns seamlessly with broader industry objectives of promoting self-reliance, stimulating economic development, and fostering technological advancement within Pakistan’s automotive landscape. With this strategic investment, Toyota Indus reaffirms its position as a key player in driving sustainable growth and innovation within the local auto industry.