Toyota announces over $100m investment to produce HEVs in Pakistan

ISLAMABAD: Following the government’s move to facilitate hybrid and electric vehicles through the new auto policy, Toyota has announced to invest over $100 million for the local production of Hybrid Electric Vehicles (HEVs) in Pakistan.

The announced investment shall go towards localisation of components, plant expansion and production preparation for the first HEV to be manufactured at Indus Motor Company Limited (IMC) plant located at Port Qasim, Karachi.

According to officials, a delegation from Indus Motor Company led by Vice Chairman Shinji Yanagi and Chief Executive Ali Asghar Jamali, met with the prime minister on Wednesday at the Prime Minister’s Office to announce the new investment.

The meeting was attended by Toyota Asia CEO Yoichi Miyazaki via video message. Members of the Cabinet including the Federal Minister for Industries Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar and Finance Minister Shaukat Tareen also attended the meeting whereas Ambassador of Japan to Pakistan, Kuninori Matsuda, was also present on the occasion.

“We are excited to announce this new investment for bringing Toyota’s latest generation hybrid electric technology to our customers in Pakistan. The announcement is testament to our commitment to Pakistan and trust in the government. We appreciate the government’s policies to encourage low carbon mobility solutions. 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 HEVs have the greatest potential to achieve mass electrification and effectively reduce CO2 emissions at the earliest time frame, contributing to the prime minister’s vision of a clean and green Pakistan,” the Toyota Asia CEO said. 

On the occasion, Prime Minister Imran Khan whilst appreciating the car maker’s investment announcement appreciated the Japanese automobile company’s trust in Pakistan’s economy, adding that “Indus Motor Company is a wonderful example of how global companies can grow successfully here in Pakistan.    

Ambassador Matsuda said that the Embassy of Japan was confident that the new investment would take economic ties between the two countries to the next level. terming it a “symbolic milestone as we approach the 70th anniversary of the establishment of diplomatic relations”.

He pledged to continue to make maximum effort to create a supportive business environment for Japanese businesses in Pakistan.

It may be recalled here that the government has announced many incentives for manufacturing and assembly of electric vehicles and hybrid vehicles in the country in the budget 2021-22 (FY22) while a whole new policy for the auto sector is also expected to be announced soon.