Indus Motor Company Limited (INDU) announced that its board has approved an additional investment of Rs1 billion (~$3.59 million) to enhance what it called localisation of production.
The company, the maker of Toyota-brand vehicles in the country, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“This is in continuation of our letter dated August 30, 2024, addressed to the PSX regarding the ‘investment of Rs4.1 billion for the localisation of parts and components of various existing vehicles,’ which is currently ongoing and is expected to be completed by the end of the calendar year 2026,” read the notice.
“This brings the total investment in the localisation project to Rs5.1 billion,” it added.
The auto assembler shared that the initiative forms part of the company’s overall strategy to progressively increase the localisation of parts and components for locally manufactured vehicles, to reduce the outflow of foreign exchange, promote the domestic automotive industry, generate employment, and contribute to the national economy.
“The announced investment will be utilised for expenditures on plant and machinery, moulds, dies, equipment, and other related costs associated with the local manufacturing of parts and components for the vehicles.
“The additional investment of Rs1 billion is expected to be completed by the end of calendar year 2027,” it added.
Last year, Indus Motor Company proposed that the upcoming Auto Policy 2026–31 should maintain at least a 40% tariff difference between Completely Knocked Down (CKD) and Completely Built Up (CBU) vehicles to protect jobs and ensure competitiveness.
Currently 17 global automotive players have invested in Pakistan, establishing plants with a combined capacity of 500,000 vehicles.
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