The board of directors of Indus Motor Company (IMC) has approved an investment of around Rs 3.0 billion for additional localization of parts and components of various existing vehicles. The investment is planned to be completed by the third quarter of 2025, the company said in a recent stock filing.
According to IMC, the fresh investment is part of the company’s overall plan to continuously increase the localization of parts and components of vehicles manufactured locally, to reduce the outflow of foreign exchange and promote the local industry.
Related: IMC Boss Optimistic About Auto Sales Recovery
The announced investment will be made towards expenditure in plant and machinery, molds, dies, equipment, and related expenses for localization of parts and components to be manufactured locally for various existing vehicles.
On the other hand, IMC’s performance during July-December 2023 (1H-FY24) shows some interesting insights. The combined sales of CKD and CBU Toyota vehicles fell by 61% to 7,324 units from 18,672 units. Vehicle production plunged by 66% to 6,391 units as compared to 18,562 units due to depleted consumer demand and vendor supply chain limitations, which led to regular plant shutdowns during the period.
Related: Despite 55% Decline in Sales, The “Big 3” Enjoy 82% Surge in Revenue
However, IMC reported an 88.6% surge in profit after tax to Rs 4.96 billion during 1H-FY24 from Rs 2.63bn despite a 41.4% drop in net sales turnover to Rs 51 billion as compared to Rs 86.83 billion in the first half. The company’s overall market share stood at 18%.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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