Karachi, September 2, 2024 – Indus Motor Company Limited (IMC) has announced an increase in its total investment to Rs 4.1 billion for the additional localization of parts and components in its manufacturing process. This decision underscores IMC’s commitment to enhancing the local automotive industry and reducing the reliance on imported components.
In a communication to the Pakistan Stock Exchange (PSX), IMC referenced a previous announcement dated February 22, 2024, in which it committed Rs 3 billion towards the localization of parts and components for its existing vehicle models. This initial phase of the investment is currently underway and is expected to be completed by the third quarter of 2025.
However, in a recent meeting on August 30, 2024, the board of directors approved an additional investment of Rs 1.1 billion. This supplementary allocation brings the total investment for the localization project to Rs 4.1 billion. The company plans to utilize these funds to enhance its capabilities in producing vehicle parts and components locally.
IMC stated that this expanded investment is aligned with its broader strategy to increase the localization of vehicle parts manufactured in Pakistan. The primary objective is to reduce the outflow of foreign exchange, foster growth in the local auto industry, create jobs, and contribute to the nation’s economic development.
“The announced investment will be allocated towards expenditures on plant and machinery, molds, dies, equipment, and related expenses necessary for the localization of parts and components for various existing vehicles,” the company stated. “This further investment of Rs 1.1 billion is planned to be completed by the first quarter of 2026,” it added.
The localization of parts and components is a critical component of IMC’s strategy to bolster its position in the Pakistani automotive market. By focusing on local production, the company aims to mitigate the impact of exchange rate fluctuations on its cost structure and pass on the benefits to consumers in the form of more affordable vehicles.
Furthermore, the investment is expected to generate significant employment opportunities within the country, particularly in the manufacturing and engineering sectors. It also aligns with the government’s vision of promoting industrial growth and self-reliance in key sectors.
The increased investment by IMC is a positive step towards strengthening the local automotive industry, reducing dependency on imports, and fostering economic stability. As the company progresses with its localization efforts, it is anticipated to set a precedent for other manufacturers in the region to follow suit, contributing to a more robust and sustainable industrial landscape in Pakistan.