KARACHI: “Pakistan’s macroeconomic goals are tied to ‘Make in Pakistan’ and import substitution. With a multiplier effect of 10, auto industry can help contribute to it significantly,” said Ali Asghar Jamali, CEO Indus Motor Company (IMC).
Talking to a group of journalists at local hotel, he said the industry has invested heavily in the last 4 decades to establish a local engineering base and they are proud that IMC has been at the forefront of this initiative.
“We are working on numerous upgrades and new models in coming future with key focus on localization.
With 36 Technical Assistance Agreements in Pakistan, we have laid the foundation of automobile technology transfer in Pakistan and exponentially contributing to it. This has not only generated employment but also opened doors to export for many local part makers”.
It is to be noted that with more than 60 percent localization, IMC is procuring local parts worth over 200 million every day from its vendors.
He said the localization has increased with the passage of time due to keen interest by the government and the local auto manufacturers. Higher volumes result in higher localization levels and vice versa. There is 90% chance that what you touch in a Corolla and Yaris is locally manufactured. Such is our commitment to the economic development of the country.
Furthermore, he said Original Equipment Manufacturers’ initiative in localizing parts of their vehicles has helped the local vendor industry significantly over the years.
“Local vendors and OEMs are working in collaboration for localization,” Jamali said, adding that recently IMC announced an investment of $100 million for localized manufacturing of hybrid vehicles. “This huge investment is sure to give a boost to the local auto vendor industry while it will also open doors for new hybrid technology,” Jamali said.
The $100 million investment will go towards localisation of components, plant expansion and production preparation for the first hybrid electric vehicle to be manufactured at IMC plant.
Besides this investment, he added, the IMC has also made an additional investment of $30 million in its plant in order to meet the demand in the post-covid era. The total industry wide installed capacity has touched 420,000 units annually and it is expected to increase in the foreseeable future with further investments across the industry.
“Hybrids, in the larger interest of the country, are the practical sustainable new option for our local customer to enjoy better mileage but also help curb the oil import bill. While facilitating customers through 50 percent to 70 percent fuel savings, Hybrid will also help generate jobs through localization,” he added.
Copyright Business Recorder, 2021
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