Indus Motor Company Limited (INDU) announced that its board has approved an extra investment of Rs1.1 billion (about $3.94 million) to increase the localization of its production.
The company, which makes Toyota vehicles in Pakistan, shared this update in a notice to the Pakistan Stock Exchange (PSX) on Monday.
“This is in continuation to our letter dated February 22, 2024 addressed to PSX regarding ‘Investment of Rs3 billion for additional localization of parts and components of various existing vehicles,’ which is ongoing and expected to be completed by third quarter of calendar year 2025,” read the notice.
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The company said that its Board of Directors approved an extra investment of Rs1.1 billion on August 30, 2024. This investment will be used to increase the localization of parts and components for various vehicles.
With this, the total investment in the localization project will reach Rs4.1 billion.
The company plans to complete the additional Rs1.1 billion investment by the first quarter of 2026. This investment aims to increase the use of locally made parts and components in their vehicles.
The goal is to reduce foreign currency spending, support the local auto industry, create jobs, and boost the economy. The money will be spent on plant upgrades, machinery, molds, dies, equipment, and other related expenses for making parts locally.
