Indus Motor Company Promises To Launch Corolla Cross Hybrid Car

Karachi-based Indus Motors has announced that the Corolla Cross Hybrid Vehicle will be available for purchase by the year’s end. Due to rising gas prices, the business is working to develop a car with drastically reduced fuel use. Toyota’s Pakistani manufacturer, Indus Motors, is placing a large stake on its next hybrid model, the Corolla Cross. The move was made due to the ever-increasing cost of gasoline.

“Hybrid vehicles will do well as they consume 50% less fuel,” said Ali Asgha Jamali, CEO of Indus Motors Company.When asked about the country’s economic woes, he added, “HEVs are the one that will last the longest. Pakistan is one of the most vulnerable countries in the world to climate change impacts. This shift toward HEVs is a long-term answer to Pakistan’s economic problems since it helps the country meet its macroeconomic goals, boosts employment, raises exports, and reduces imports. According to Jamali’s statement, “Pakistan is acutely affected by climate change, necessitating comprehensive measures across all sectors.”

CEO Jamali stated that the goal of the current news release was to reduce fuel consumption by half compared to regular gasoline and diesel vehicles. An estimated annual savings of $37 million from 30,000 hybrid electric vehicle (HEV) units can be attributed to the new advanced hybrid technology.

The introduction of HEV automobiles in Pakistan has already cost the firm $100 million. This time around, Toyota plans to launch the Corolla Cross, the first hybrid electric vehicle SUV to be built in the country. According to the manufacturer, the car will hit the market in late 2023 or early 2024. The corporation has committed to addressing a critical issue in Pakistan: the country’s rising carbon footprint. Compared to India, where fossil fuels make up only 5% of the energy mix, they make up 62% in Pakistan. Pakistan’s yearly CO2 emissions in 2021 were 229.51 million tonnes, up from 2020’s figure of 210.38 million tonnes, as reported by the Global Carbon Budget 2022.

However, because of the country’s challenging economic circumstances, demand for automobiles is low. According to Jamali, the auto industry will sell 6,000 automobiles per month over the next 12-18 months, with IMC contributing around 1,500 of those sales. Vehicle prices have increased due to the weakening of the Pakistani rupee and increased exorbitant auto financing rates, limiting demand. Jamali added that even though production has dropped by 55%, layoffs will still be necessary. The company hasn’t had any layoffs since it values its workers. Weak demand, quick price inflation, costly auto financing, increased taxes, and poor macros are just some of the significant difficulties facing the country’s automobile business.

According to him, the company’s yearly volume of sales dropped by 58% between January 2023 and June 2023. Letters of credit provided for a certain term still significantly impact sales, says Jamali, making it difficult for the local auto sector to meet production goals. He made the following statement to the press: “the import of used cars is gaining momentum, severely impacting the already affected local auto industry, as total used car imports are more than the production of some OEMs.(Original Equipment Manufacturers).” The State Bank of Pakistan has very few foreign exchange reserves, so the government shouldn’t allow the policy of importing secondhand automobiles. Instead, it should encourage the domestic auto sector.

He went on to say that the expansion of the auto sector is inextricably related to a well-thought-out import policy, and that the local auto industry would never expand so long as imports are allowed at will. Furthermore, the local auto industry’s reasonable localization efforts in terms of parts and future localization ambitions are being undermined by the influx of imported secondhand vehicles.

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