Toyota set to produce hybrid cars for first time in Pakistan thumbnail

Toyota set to produce hybrid cars for first time in Pakistan

Indus Motor Company, also known as Toyota as it manufactures and
also sells imported Toyota cars in Pakistan, has revealed its plans to extend
its product line adding hybrid cars to its list for the first time in Pakistan.

Pakistan’s car users already have experienced Toyota hybrids such as sedan
Prius and hatchback Aqua, which are regular sights on Karachi roads. They come
in used condition mainly from Japan.    

The company has shared its plans with the Pakistan Stock Exchange (PSX) that
it will be investing $100 million over the next three years for the local
production of Hybrid Electric Vehicle (HEV) in Pakistan.
       

The company said that its decision was based on the incentives provided
against certain taxes and duties by the Government of Pakistan through Finance
Act, 2021 and subsequent Statutory Regulatory Orders (SROs).

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“The announced investment shall be made towards plant upgradation and
extension, localization of parts or components and production preparation or
assembling of the first Hybrid Electric Vehicle, by the company at its plant in
Port Qasim Authority, Karachi,” Toyota announced.

Will hybrid cars make inroads in Pakistan’s auto sector?

“People like Toyota hybrid cars in Pakistan,” said Shakaib Khan, an auto
sector expert. “But the success of locally-made hybrid cars will depend on …
their price and features.”

Khan said that many people care little if a car is new or old. The main
things they consider is the price and features.

“I agree that a locally-made new car have many pros too such as warranty and
comparatively cheaper spare parts. But if a person can buy significantly
cheaper and almost same car with more features then why would he or she would
be (willing to) pay more?” he emphasized.

It is commonly observed that locally-manufactured cars lack features when
compared with their similar models manufactured abroad. For instance, a Suzuki
Alto or Toyota Yaris or a Honda City manufactured in Pakistan have fewer
features than the same models made abroad.    

Samaa Money talked with users of hybrid cars who said that their expense on
fuel was 30 percent lower. This means that they would have to pay 30 percent
less if they drove a hybrid car than what they usually spend while driving a similar
normal car.

Why government favoring EVs and Hybrids?

Like other countries around the world, Pakistan takes effects of climate
change seriously as the country is among top five risk-prone countries directly
hit by effects of climate change and resulting economic and social losses

In an effort to play its part, Pakistan has formulated an Electric Vehicle
Policy to facilitate the conversion of the transport sector from fuel-based
motorcycles, cars, buses and trucks to electric vehicles. The policy offers
incentives on duties and taxes to help businesses start industrial assembly.
Pakistan hopes to electrify 30 percent of the total vehicles in the country by
2030.

According to the Ministry of Climate Change, 42 percent of domestic air
pollution comes from traffic. Electrifying 30 percent of vehicles could save
Pakistan nearly $2 billion in oil imports every year.

However, EV Technologies Consultant CEO and the person representing SZS
Group in a joint venture with POF Wah for assembling electric buses, Shaukat
Qureshi said that Pakistan is perhaps the first country that has given electric
car status to hybrid cars.

“Worldwide, hybrid technology is a failed technology,” said Qureshi. SZS
Group is also planning to start electric car importing and manufacturing in
Karachi. “Because it still uses fuel. Will the country be able to reduce oil
import bill?”

He lamented that a major company was starting hybrid production, terming it
a great setback for the nascent electric car market of Pakistan.

Toyota stock price, however, increased by 4
percent from Rs1,264 to Rs1,318 on the day of the notification.

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