Indus Motor Company, the assembler of Toyota-brand vehicles in Pakistan, has achieved a significant milestone by becoming the first company in the four-wheeler segment to commence exports. The company recently signed an agreement with Toyota Egypt, and its first shipment has already been sent this month, according to Chief Executive Ali Asghar Jamali.
In a press release, Indus Motor Company stated that the export of semi-processed raw materials to Toyota Egypt marks the beginning of a new era for original equipment manufacturers (OEMs) in Pakistan. The company has plans to continue expanding its exports in this direction.
While this achievement is noteworthy, Jamali emphasized that it is still early to consider it a turning point for the struggling auto industry in Pakistan. The country’s auto sector has been facing challenges due to constraints on the issuance of Letters of Credit (LCs) and import restrictions resulting from low foreign exchange reserves. Although the State Bank of Pakistan (SBP) has lifted restrictions, it will take time for normalcy to be restored.
Furthermore, the depreciation of the rupee and high inflation have pushed up automobile prices, while record-high key interest rates have discouraged buyers from financing. Consequently, several players in the auto sector have announced plant shutdowns.
Jamali acknowledged that the current export capacity is limited due to raw material constraints in the country. However, he expressed hope for the future, stating that if confidence is built through successful exports to Toyota Egypt, there may be opportunities to export more parts. He also expressed optimism that other manufacturers would gain confidence and explore avenues for export.
Indus Motor Company’s partnership with Toyota Egypt is seen as the first step in meeting the requirements outlined in the Auto Industry Development and Export Policy (AIDEP) 2021-2026, according to a statement from the company.
With this milestone, Indus Motor Company has paved the way for other assemblers in the auto sector to consider export opportunities, contributing to the growth and development of Pakistan’s automotive industry.
