Islamabad: Encouraged by the rising Pakistan government’s support for electric vehicles, Toyota has announced to invest over US$100 million for the local production of Hybrid Electric Vehicle (HEV) in Pakistan.
The investment will facilitate localisation of components, plant expansion and production preparation for the first HEV to be manufactured at the Indus Motor Company Limited (IMC) plant located at Port Qasim, Karachi.
A delegation of IMC that manufactures and markets Toyota brand vehicles in Pakistan, led by the Vice Chairman Shinji Yanagi and Chief Executive Ali Asghar Jamali, met Prime Minister Imran Khan at the Prime Minister’s Office to announce the new investment. Federal Minister for Industries Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar and Finance Minister Shaukat Tareen also attended the meeting.
Welcoming the investment in the EV sector, Imran Khan said: “Toyota has remained the most committed partner for Pakistan even in the most testing times.” He said the country “valued the relationship and Toyota’s trust in Pakistan’s economy and welcome this new investment for environment-friendly hybrid electric vehicles.”
Yoichi Miyazaki, CEO for Toyota Asia, said that the investment would bring Toyota’s latest generation Hybrid Electric Technology to Pakistani customers. “Today’s investment announcement is testament to our strong commitment to Pakistan and trust in the Government. We appreciate the Government’s policies to encourage low carbon mobility solutions” he said.
Toyota, the world’s largest automaker by volume, is set to deliver its first all-electric line-up next year. Toyota is moving electric vehicles “to achieve mass electrification and effectively reduce CO2 emissions at the earliest timeframe, contributing to the Prime Minister’s noble vision of a “Clean and Green Pakistan”.
Ambassador of Japan to Pakistan, Kuninori Matsuda, who also attended the meeting, said that the “Embassy of Japan is confident that the new investment decision will take the economic ties between Japan and Pakistan to the next level.” He termed the partnership “a symbolic milestone” as Pakistan and Japan approach the 70th anniversary of the establishment of our diplomatic relations in 2022. Ambassador Matsuda hoped that “Japanese auto technology will play a key role to realize the new Pakistani automobile development plan.” He also pledged maximum effort to create a supportive business environment for Japanese businesses in Pakistan in cooperation with the Government of Pakistan.
In 2019, Pakistan approved the first-ever national EV policy with the aim to ensure that 30 per cent of vehicles on its street will be electric ones by 2030 in a bid to tackle the effects of climate change and offer affordable transport.
Ali Asghar Jamali, chief executive of IMC, said the $100 million investment in Pakistan’s automotive sector represents the company’s strong commitment to contribute towards making Pakistan less vulnerable to climate change by launching hybrid cars. “We are thrilled to bring the most efficient 4th Generation hybrid electric vehicles” to Pakistani customers which will help reduce carbon footprint.
IMC has contributed significantly to support the local automobile industry in Pakistan, by creating its complete value chain with over 60 part makers making over Rs200 million worth of parts every day, 50 independently owned dealerships and employing over 60,000 people directly and indirectly, working across Pakistan, the company said.