According to a source, Pakistan’s largest automaker, Indus Motor Company, has secured a deal with Toyota Egypt to begin exporting vehicle products in July.
“The IMC has become the first-ever auto manufacturer to open gates to the global supply chain by signing an agreement with Toyota Egypt to export high-quality products starting July 2023,” the automaker said in a statement on Tuesday.
The revelation comes at a critical juncture in the country’s auto industry, which is struggling with inventory shortages due to import restrictions and insufficient foreign exchange reserves.
“The first consignment of semi-processed raw material to be shipped to Toyota Egypt will mark the beginning of era from the export point of view by any OEM [original equipment manufacturer] in Pakistan and plans are in place to continue in this direction,” the Toyota vehicles maker in Pakistan said.
The partnership with Toyota Egypt is the first step to meet requirements set under the Auto Industry Development and Export Policy (AIDEP) 2021-2026, according to the company.
“This is a significant milestone that will not only augment IMC’s export capabilities and serve as a testament to IMC’s quality standards but also contribute immensely towards the development of Pakistan’s growing auto industry.
“Seeing the ‘Make in Pakistan’ dream cross international borders is a watershed moment, not just for us, but for the entire country.” “Becoming a part of Toyota’s global supply chain validates IMC’s commitment to putting Pakistan on the map and strengthening its overall economy,” stated Ali Asghar Jamali, CEO of IMC.
The agreement is a big step forward for IMC in developing its global footprint. It is also the first time that a local automobile part has been integrated into the Toyota Global Supply Chain.
“Moreover, this step will strengthen connectivity between Africa and Pakistan, as part of the government’s “Look Africa” policy,” he added.
Jamali stated that the agreement will allow the organization to expand its capabilities even further. “We intend to go above and beyond this to establish Pakistan’s auto industry as a global symbol of dependability and quality.”
Pakistan’s low currency reserves, depreciated rupee, and record-high inflation have all hampered the country’s auto sales. Import restrictions forced nearly all automakers to halt production several times. IMC announced its fifth plant shutdown of the year on June 23, 2023, citing “insufficient inventory level.”
According to the central bank, it has removed import restrictions in the country — a move that seems to please the International Monetary Fund to approve a $3 billion short-term arrangement. With no restrictions on imports, IMC plans to boost its exports of auto products.
