KARACHI, April 27 — Indus Motor Company said on Monday it has increased its investment in a vehicle localization project to Rs5.1 billion ($18.3 million), aiming to reduce reliance on imports and strengthen Pakistan’s domestic auto industry.
In a notice to the Pakistan Stock Exchange, the automaker disclosed an additional allocation of Rs1 billion, approved by its board of directors at a meeting held on April 24. The latest funding builds on an earlier commitment of Rs4.1 billion announced in August 2024 for the same initiative.
The project focuses on the localization of parts and components used in the company’s existing vehicle lineup. It is currently underway and is expected to be completed by the end of calendar year 2026, while the newly approved investment is projected to extend implementation through 2027.
Indus Motor said the initiative is part of its broader strategy to progressively increase local content in vehicle manufacturing. The move is intended to cut foreign exchange outflows, enhance supply chain resilience and support local vendors.
“The additional investment will further enhance localization of parts and components,” the company said, adding that the total allocation for the project now stands at Rs5.1 billion.
Funds will be directed toward plant and machinery, molds, dies and other essential equipment required for domestic production of auto parts. The company also expects the initiative to create employment opportunities and contribute to economic growth.
Pakistan’s auto sector has been under pressure from currency volatility and import restrictions in recent years, prompting manufacturers to accelerate localization efforts to mitigate external risks and maintain production stability.