KARACHI: Toyota will invest more than $100 million for local production of hybrid electric vehicles (HEVs) in Pakistan. The investment would go towards locating components, expanding the plant and preparing for production of the first hybrid electric vehicle to be manufactured by Indus Motor Company Limited (BMI) factory located in Port Qasim, Karachi, said Ali Asghar Jamali, Managing Director of Indus Motor Company.
IMC has made large-scale investments to improve its own capacity and meet customer requirements for new products.
Corolla is, today, the top-selling car brand model in Pakistan and the country is the country that sells the most Corolla in the Asia-Pacific region and also has the distinction of being the No. 1 in the market. from Toyota, he added.
The Indus Motor Company has contributed massively to establishing the local automotive industry in Pakistan, creating its complete value chain with over 60 parts manufacturers, manufacturing over Rs 200 million of parts every day, 50 dealerships self-employed, providing after-sales service to customers and employing over 60,000 people directly and indirectly, working across Pakistan.
Prime Minister Imran Khan commended IMC for its contribution to the economy and the automotive industry.
“The investment announcement represents IMC’s commitment to our community as we make a tangible contribution to making Pakistan less vulnerable to climate change. Toyota has several electrification technologies, and among these, we believe that powerful hybrids are a practical and sustainable solution to achieve mass electrification,” Jamali said.
“We are delighted to offer our customers the most efficient 4th generation hybrid electric vehicle, which will help reduce the carbon footprint of our vehicles, in line with the Prime Minister’s vision,” he added.
Jamali has been associated with the company since October 2000 and held key positions in various departments, through which he gained a wealth of experience in managing the end-to-end operations of the company.
Jamali is a member of the Institute of Chartered Accountants of Pakistan (ICAP) and has completed Harvard University’s Advanced Management Program and Wharton School of Business Accelerated Management Program in the United States.
Here are some excerpts from a conversation with him.
Tell us about your business?
Indus Motor Company (IMC) is a joint venture between House of Habib of Pakistan, Toyota Motor Corporation (TMC) and Toyota Tsusho Corporation (TTC) of Japan. Incorporated in 1989, the company manufactures and markets Toyota branded vehicles in Pakistan. These include several variants of the flagship “Corolla” and the new “Yaris” in the passenger car segment, “Hilux” in the light commercial vehicle segment and “Fortuner” in the sport utility vehicle segment.
Where is the company’s manufacturing facility located?
IMC’s manufacturing plant and offices are located on a 107 acre site in Port Qasim, Karachi. The product is delivered to end customers nationwide through a strong network of 50 independent 3S dealers nationwide.
How is the company performing in terms of sales?
Since its inception, IMC has sold over 903,800 CBU/CKD vehicles. It has also demonstrated impressive growth in terms of volumetric increase. From a modest start of production of 20 vehicles/day in 1993, the company’s daily production capacity has now grown to 268 (with overtime) units/day. This has been made possible through the development of human talent embracing the “Toyota way” of quality and lean manufacturing.
What are the expansion and investment plans?
Toyota will invest more than $100 million for local production of hybrid electric vehicles (HEVs) in Pakistan. The investment would go towards locating components, expanding the factory and preparing for the production of the first hybrid electric vehicle to be manufactured at the Indus Motor Company (IMC) factory located in Port Qasim, Karachi.
The company has made large-scale investments to improve its own capacity and meet customer requirements for new products. Corolla is, today, the best-selling automobile brand model in Pakistan.
How many employees does the company have?
The company employs 2,855 people. It invests heavily in training team members and management employees and creating a culture of high performing, empowered teams that work seamlessly across different processes in pursuit of quality and consistency. ‘continuous improvement. IMC employees are encouraged to pursue high standards of business ethics and safety consistent with the company’s core values; they communicate frankly and respect the customers. Employees give IMC a high rating on the work environment and level of job satisfaction according to the semi-annual TMC Morale Survey.
What is the company’s role in Pakistan’s automotive industry?
IMC has played a major role in the development of the entire local automotive industry value chain. He is also proud to have contributed to the reduction of poverty at the local level by promoting localization. This, in turn, directly created thousands of job opportunities and transferred technology to 52 suppliers supplying parts. The company is also a major taxpayer and a significant contributor to the public purse.
Do you think hybrid vehicles will help achieve the environmental goal?
Hybrids will help achieve all of the government’s macroeconomic and environmental goals. The infrastructure is ready for hybrid vehicles in the country and it will help create jobs through localization. Hybrid vehicles will save up to 50% fuel, which will have a direct impact on the carbon footprint and carbon emissions. The company takes great pride in being the leader in bringing technological advancements to Pakistan as well as developing the local engineering base.
Your point of view on the increase in vehicle prices?
It is difficult to maintain prices, because the exchange rate, transport costs and the cost of raw materials have increased considerably. These factors really affect car prices and they are beyond the control of manufacturers.