Indus Motor Company (IMC) the makers of Toyota cars in Pakistan has announced to begin local production of hybrid vehicles in the country. In a notification sent to the Pakistan Stock Exchange (PSX), the company informed that it will invest $100 million for the local production of hybrid electric vehicles (HEVs) over the next 3 years.
This comes on back of relaxation of various taxes and duties announced by the government in the Finance Act 2021, in order to encourage the local production of environment-friendly vehicles in Pakistan. Under the said Finance Act 2021, only 4% customs duty on the import of parts for hybrid vehicles will be applicable, while only 3% customs duty will be there on the import of parts for plug-in hybrid electric vehicles. Furthermore, sales tax on import and local supply of HEVs is 8.5% on cars up to 1,800cc and 12.75% for cars from 1,801cc to 2,500cc.
IMC’s notifications sent to the PSX
IMC currently offers Toyota Prius hybrid and Corolla Cross hybrid in its portfolio as CBUs, however the Japanese automaker Toyota, which is considered a pioneer in hybrid vehicles has an array of quality hybrids in its lineup in addition to the aforementioned two, such as the Alphard, Aqua, C-HR, new Corolla as well as new Yaris & Yaris Cross hybrid. Plus, it has a hybrid option for almost all vehicles available in its global portfolio including the Harrier, Rav4, Camry & Highlander etc.
The Japanese automakers in Pakistan have always strongly advocated in favor of hybrid electric vehicles instead of all-electric vehicles– the area where Chinese automakers excel. Now with latest tax relaxations on hybrids, the road seems open for Japanese brands to introduce their tested HEVs in Pakistan. The move, as anticipated by the government will help combat climate change effects and will help reduce country’s fuel import bill too.
A 3d animation professional with over 20 years of industry experience having served in leading organizations & production facilities of Pakistan, an avid car enthusiast and petrolhead with an affection to deliver writings to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com