KARACHI: In a major development for Pakistan’s auto industry, Toyota has announced plans to invest $300 million in the country over the next five years. The announcement was made by Ali Asghar Jamali, Chief Executive Officer of Indus Motor Company.
According to Jamali, Toyota has already invested $736 million in Pakistan over the past 35 years, reflecting its long-term commitment to the local market.
However, he highlighted that heavy taxation remains a key challenge, noting that large vehicles in Pakistan are subject to taxes of up to 60 percent.
He emphasized that automobile manufacturers operate globally and place immense importance on maintaining their brand reputation, adding that no company compromises on quality standards.
Comparing market dynamics, Jamali pointed out that around 90 million vehicles were sold worldwide last year, whereas Pakistan’s total sales stood at just 200,000 units, indicating significant growth potential in the local market.
He urged the government to introduce a long-term auto policy spanning at least 10 years, stating that consistent and stable policies would boost manufacturing and attract greater foreign investment into the sector.
Jamali further revealed that approximately 60 percent of vehicle parts used by Indus Motor Company are now locally manufactured, contributing to industrial development and localization.
Discussing future trends, he said electric vehicles (EVs) represent the global future of mobility, but Pakistan currently lacks the necessary EV charging infrastructure to support large-scale adoption.
On performance, he noted that the company achieved a 1 percent increase in market share last year, while a decline in interest rates has led to a rise in auto financing over the past three years.
He added that the company will align its future strategy in accordance with government policy directions. Furthermore, Indus Motor Company has paid $6.3 billion in taxes to date and has helped save $6.5 billion in foreign exchange through local production.