ISLAMABAD: With an investment of $100 million as announced earlier, Indus Motor Company (IMC) is set to produce the first hybrid electric vehicle in Pakistan.
According to IMC CEO Ali Asghar Jamali, the investment will go towards localisation of components, plant expansion and production preparation for the first hybrid electric vehicle to be manufactured at IMC plant.
In a statement issued here on Friday, Jamali said besides this investment, the IMC has also made an additional investment of $30 million in its plant in order to meet the demand in the post-covid era.
The total industry wide installed capacity has touched 420,000 units annually and it is expected to increase in the foreseeable future with further investments across the industry.
“Hybrids, in the larger interest of the country, are the practical sustainable new option for our local customer to enjoy better mileage but also help curb the oil import bill. While facilitating customers through 50% to 70% fuel savings, Hybrid will also help generate jobs through localization,” he added.
“Pakistan’s macroeconomic goals are tied to ‘Make in Pakistan’ and import substitution. With a multiplier effect of 10, the auto industry can help contribute to it significantly,” said the CEO.
According to him, the industry has invested heavily in the last 4 decades to establish a local engineering base and we are proud that IMC has been at the forefront of this initiative. ”We are working on numerous upgrades and new models in the coming future with a key focus on localization. With 36 Technical Assistance Agreements in Pakistan, we have laid the foundation of automobile technology transfer in Pakistan and exponentially contributed to it. This has not only generated employment but also opened doors to export for many local part makers,” Jamali added.
He claims with more than 60% localization, IMC is procuring local parts worth over 200 million every day from its vendors. The localization has increased with the passage of time due to keen interest by the government and the local auto manufacturers. Higher volumes result in higher localization levels and vice versa. There is a 90% chance that what you touch in a Corolla and Yaris is locally manufactured. Such is our commitment to the economic development of the country.
Original Equipment Manufacturers’ initiatives in localizing parts of their vehicles have helped the local vendor industry significantly over the years.
“Local vendors and OEMs are working in collaboration for localization. Recently IMC announced an investment of $100 million for localized manufacturing of hybrid vehicles. This huge investment is sure to give a boost to the local auto vendor industry while it will also open doors for new hybrid technology,” said Jamali.
