Toyota Indus Motor Company (IMC) has announced that it will begin local production of Hybrid Electric Vehicles (HEVs) in Pakistan soon. The company has revealed in an official notification to the PSX that it will invest $100 million for the local production of HEVs over the next 3 years.
Toyota IMC added that the company will allocate the amount for the up-gradation of the local assembly plant at Port Qasim, Karachi, which will also enable greater localization of car parts.
The company also acknowledged the recent duty and tax reliefs provided by the government to the automakers to encourage the local manufacturing and sales of environment-friendly vehicles.
There are also reports that Honda Atlas Cars Limited (HACL) is planning to make a large investment in the local production of HEVs in the near future.
This is a significant development, as Toyota has an extensive lineup of HEVs, including Toyota Prius and Corolla Cross, which are already being sold in Pakistan as Completely Built-Up (CBU) units.
There are also several other imported HEVs in the Pakistani market such as E160 Toyota Corolla, Toyota C-HR, Toyota Aqua, and a few others, that are immensely popular despite lofty price tags.
The local assembly of Toyota’s HEVs will not only result in increased dividends for the company but will also encourage other automakers to introduce their HEV lineups in Pakistan and nurture a healthy and competitive localized HEV market in Pakistan.