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Indus Motor Company, the assembler of Toyota-brand vehicles in Pakistan, said on Tuesday that it has become the first company in the four-wheeler segment to start exports after it signed an agreement with Toyota Egypt.

“We have already sent our first shipment this month,” Chief Executive Ali Asghar Jamali told Business Recorder.

A press release issued by the company also stated that the first consignment of semi-processed raw material to be shipped to Toyota Egypt will mark the “beginning of era from the export point of view by any original equipment manufacturer (OEM) in Pakistan and plans are in place to continue in this direction”.

Jamali said that while significant, it is “too early” to deem it a turning point for the struggling industry.

His remarks come as Pakistan’s auto sector, highly dependent on imports to meet its assembling needs, remains under pressure due to constraints on issuance of Letters of Credit (LCs). The hindrance comes on the back of Pakistan’s low foreign exchange reserves that triggered import restrictions.

While the State Bank of Pakistan (SBP) has lifted restrictions, it will take some time before normalcy returns.

At the same time, a fast-depreciating rupee pushed up prices of automobiles while runaway inflation also took Pakistan’s key interest rate to a record high, discouraging buyers from financing. In response, almost all auto sector’s players have been announcing plant shutdowns with regular monotony.

“This is a baby step at the moment,” said Jamali. “Currently, we have raw material constraints in the country. It would stop us from exporting huge quantities. But I am hopeful.”

The CEO said the company will only be exporting a certain part to Egypt.

“If their confidence is built, we may be asked to export more parts.

“Even if we manage to export one part to many markets, it would increase our export numbers.

“We hope that other manufacturers would also get confidence and find avenues to export as well,” he added.

A statement from the company, meanwhile, said the partnership with Toyota Egypt “is the first step to meet requirements set under the Auto Industry Development and Export Policy (AIDEP) 2021-2026”.

Comments

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Pakistani1 Jul 11, 2023 06:52pm
Best wishes for success.
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Fazeel Siddiqui (Overseas Pakistani) Jul 11, 2023 07:01pm
Transfer pricing?
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Builder Jul 11, 2023 07:30pm
It will be good to know details. Is their FOB competitive enough? The biggest question is whether they will be demanding any subsidies to export like rest of the export segments 8-).
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Zaryab khan Jul 11, 2023 08:49pm
I can just say very well done Indus Motors and kindly keep it up because this is the only way of pakistan economic problems. That's export, export and only export
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Janbaaz Jul 11, 2023 09:35pm
What export? Toyota Indus imports basic parts such as oil and filters and sells them at exorbitant rates. Take the example of Toyota Corolla. An imported oem oil filter costs Rs. 3200 and air filter Rs. 7500. Why can't it source these parts locally?
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Rebirth Jul 11, 2023 10:07pm
The assembly of buses should’ve been ramped up by now with the newly setup plant in Karachi accepting orders of thousands of buses from all over the country. The same should’ve happened with our car assembly. In both cases, we aren’t manufacturing anything and neither are we producing our own products. The useless, defeatist business community of Pakistan is always complaining about one thing or another, making us globally uncompetitive and heavily reliant on imports. The entire commercial sector, from hotels to malls relies on generators but when it comes to running our industries, and specifically the auto sector, they want direct and uninterrupted supply from the national grid without any fluctuations. The most advanced nations and even developing nations known for manufacturing rely on backup generators, yet our versions of Henry Ford and Adolf Hitler want consistent supply. Till we solve our energy sector’s structural problems, we can continue making progress in the auto industry.
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Asif Jul 11, 2023 11:19pm
When 90% is imported parts ,how can you export to Egypt. Would be cheaper for Egypt to buy from Malaysia & India. In Pakistan they are assembly the cars & trucks. In India it is manufactured .
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FZS Jul 11, 2023 11:52pm
Just an eyewash to get "exporter" status in order to secure regular/uninterrupted opening of L/Cs for import
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Raja Faisal Jul 12, 2023 01:34am
Well done indus moters but if they increase there production coz already in Pakistan people paying own on cars
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Haq Jul 12, 2023 08:40am
Indus motors basically influenced the ministry of industries & it's policies, way back since 1990s. They forced govt to ban imports of CBU, revised EV policy 3 to 4 times, with HEV benefits instead of EV & recently a govt committee questions auto export, so they started some cosmetic export. May Allah help our nation with honest leadership
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Saeed Akhtar Jul 12, 2023 11:54am
Best wishes for success
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Mohsin Jul 12, 2023 12:44pm
Lols, don't understand what is being exported. They don't manufacture anything. I am sure that they have some thing up their sleeve. I think they are after export rebate. Another way to mint money.
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Pakistani Jul 12, 2023 12:53pm
i heard someone say they were exporting mats/car carpet. LOLZZZZZ
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Ehsan Jul 12, 2023 03:05pm
@Builder, seems like it is for subsidy, transparency is important, mechanism should be in place. Else what's the point if export is to cost Pakistan more trough transactional coverup / window dressing.
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Tariq Qurashi Jul 12, 2023 03:06pm
This is excellent news. Other car manufacturers need to be pushed in the same direction.
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Aqib Nuhullah Jul 12, 2023 09:31pm
Pakistan is starting to raise its head after almost 5 years of turmoil. Indeed handwork and commitment pays off....
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Asif Jul 13, 2023 10:39am
Fail to understand, Toyota pakistan is importing 95% parts from Japan for assembly of cars how they export to Eygpt in competitive rates. When these plants were allowed it was commitment by Toyota that within 5 years all parts will be manufactured in pakistan but after 50 years we are still importing parts for assembly of cars.
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Aslam Chaudhry Jul 13, 2023 01:50pm
Technically, this is "Re-export"
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