A Japanese car manufacturer, through its local partner Indus Motor Company, has announced plans to invest up to $400 million in Pakistan.
Speaking in Karachi, CEO Asghar Ali Jamali revealed that the manufacturer plans to invest between $300 million and $400 million over the next four to five years. He said the investment aims to expand operations and align with global automotive trends, particularly the transition toward electric vehicles (EVs).
Jamali urged the government to introduce a clear and consistent 10-year auto policy instead of the current five-year framework.
“There should be no ambiguity in the policy; it must be very clear,” he emphasized, adding that long-term clarity is essential for launching EVs in Pakistan.
Electric vehicles seen as future
Highlighting global trends, Jamali said the world is rapidly adopting electric vehicle technology.
“EV is the future, and [Toyota Pakistan] will also launch an EV vehicle,” he stated, indicating Toyota’s plans to enter Pakistan’s emerging electric mobility market.
Growth in auto financing
The CEO noted that auto financing in Pakistan has doubled over the past three years, largely due to lower interest rates. He also pointed out that the bank loan limit for vehicles has been increased from Rs3 million to Rs10 million, which is expected to boost car purchases.
Jamali stressed the importance of increasing local vehicle production to support exports. He said developing a domestic raw materials industry is crucial, as it would reduce production costs and ultimately lower vehicle prices for consumers.
Trade support and tax relief
To enhance exports, Jamali urged the government to negotiate preferential trade agreements with countries importing vehicles. He also called for reduced taxes on Pakistani vehicles in export markets, saying such measures would improve competitiveness globally.
Toyota’s planned investment reflects growing optimism about Pakistan’s auto industry and its potential for modernization.
