After signing an agreement with Toyota Egypt, Indus Motor Company (IMC), which assembles Toyota vehicles in Pakistan, has joined the club of automakers that export vehicles to other countries.
Other notable names in this club include Master Changan Motors Limited (MCML) and Sazgar Engineering Works Limited (SEWL).
According to a report from Business Recorder, Toyota IMC sent its first shipment in July. The company’s press release stated that the first shipment of semi-processed raw material has been sent to Toyota Egypt.
It stated that the signing will see to the “beginning of era from the export point of view by any original equipment manufacturer (OEM) in Pakistan and plans are in place to continue in this direction.”
Toyota IMC CEO Ali Asghar Jamali called it a significant development but cautiously stated that it is “too early” to call it a turning point for the faltering auto industry of Pakistan.
Pakistan’s auto industry, which relies heavily on imports, is under pressure due to Letters of Credit (LC) restrictions. Pakistan’s limited foreign exchange reserves restricted imports. While the State Bank of Pakistan (SBP) has loosened restrictions, normalcy will take time.
Regarding the company’s export plans, Jamali stated:
This is a baby step at the moment. Currently, we have raw material constraints in the country. It would stop us from exporting huge quantities. But I am hopeful. If their [Egypt’s] confidence is built, we may be asked to export more parts. Even if we manage to export one part to many markets, it would increase our export numbers. We hope that other manufacturers would also get confidence and find avenues to export as well.
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Mr Jamali sb seems to be one of those CEOs who do not make a decision unless slapped by something. A baby step from him means he needs to be slapped a bit more to make it a stride.
What is the exact “semi-processed raw material” part (or parts)?
When a company does not disclose the item being exported clearly, one begins to question the significance of the “baby step”…
The exported item is car mats.
They don’t have anything to export or perhaps they are clearing old stock. Neither Egypt vehicles standard as low as our locally assembled units.