Indus Motor approves Rs1 billion additional investment to raise localisation spend to Rs5.1 billion

Indus Motor Company Limited has approved an additional investment of Rs1 billion to expand localisation of auto parts, taking total spending on the project to Rs5.1 billion, the company said in a disclosure to the Pakistan Stock Exchange on Monday.

The decision was taken by the company’s board of directors in its meeting held on April 24, 2026, as part of an ongoing localisation initiative first announced in August 2024 with an initial allocation of Rs4.1 billion.

“We are pleased to inform you that the Board of Directors, in its meeting held on April 24, 2026, has approved an additional investment of Rs. 1 billion to further enhance the localisation of parts and components. This brings the total investment in the localisation project to Rs. 5.1 billion,” the company said in its notice. 

The localisation programme focuses on increasing domestic manufacturing of vehicle components, with the company stating that the initiative aims at “reducing the outflow of foreign exchange, promoting the domestic automotive industry, generating employment, and contributing to the national economy.”

The investment will be directed towards plant and machinery, moulds, dies, equipment and related infrastructure required for the local production of parts and components for existing vehicle models.

The project, originally expected to be completed by the end of 2026, will now extend into 2027, with the additional Rs1 billion investment expected to be deployed by the end of that year.

Indus Motor submitted the disclosure under Sections 96 and 131 of the Securities Act, 2015 and relevant Pakistan Stock Exchange regulations, and requested dissemination of the information to market participants.

Indus Motor Company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The company was formed in accordance with the terms of a Joint Venture agreement concluded amongst certain House of Habib companies, Toyota Motor Corporation and Toyota Tsusho Corporation for the purposes of assembling, progressive manufacturing and marketing of Toyota vehicles. 

The company also acts as the sole distributor of Toyota and Daihatsu vehicles in Pakistan and has a license for assembling, progressive manufacturing and marketing of these vehicles in Pakistan.