Indus Motor to Infuse Rs 3 Billion for Localization of Parts

Indus Motor to Infuse Rs 3 Billion for Localization of Parts

Karachi, February 22, 2024 – Indus Motor Company Limited made a significant announcement on Thursday, revealing plans for a fresh investment of Rs 3 billion aimed at the localization of parts and components.

The communication, addressed to the Pakistan Stock Exchange (PSX), highlighted that the decision was ratified by the board of directors during their meeting on February 21, 2024.

The investment, totaling around Rs 3 billion, is earmarked for an extensive effort to enhance the localization of parts and components for various existing vehicles manufactured by the company. This strategic move aligns with the company’s broader plan to progressively increase the localization of automotive components. The primary objectives are to minimize the outflow of foreign exchange and foster the growth of the local auto industry.

Indus Motor emphasized that this substantial investment will be directed towards expenditures in plant and machinery, molds, dies, equipment, and related expenses necessary for the localization of parts and components. By investing in the local production of essential components, the company aims to contribute to the reduction of dependence on imported parts, thereby strengthening the domestic automotive manufacturing sector.

The investment initiative is part of Indus Motor Company’s ongoing commitment to support the government’s vision for self-reliance in the automotive industry. By localizing more components, the company not only aims to improve cost efficiencies but also play a pivotal role in advancing the broader objectives of the automotive sector in Pakistan.

The proposed investment plan is set to be completed by the third quarter of the calendar year 2025. This timeline reflects the company’s strategic planning to implement these localization efforts gradually and efficiently.

Indus Motor Company has been a key player in the Pakistani automotive industry, producing a range of vehicles for the local market. The decision to invest Rs 3 billion in localization further underscores the company’s dedication to sustainability, economic growth, and the promotion of a robust domestic manufacturing ecosystem.

As the automotive landscape continues to evolve, such investments play a vital role in shaping the future of the industry. Indus Motor’s commitment to localization not only aligns with global trends but also contributes significantly to the economic development and competitiveness of the Pakistani automotive sector.