Indus Motor Company Limited (INDU), which assembles Toyota vehicles locally, has announced that its board has approved an additional investment of Rs1 billion aimed at further strengthening localization of vehicle production in Pakistan.
The company shared the development through a notice to the Pakistan Stock Exchange on Monday. It says that this investment builds on its earlier commitment announced on August 30, 2024, involving Rs4.1 billion for the localization of parts and components across its existing vehicle lineup. That ongoing project is expected to be completed by the end of calendar year 2026.
With the new allocation, the total investment in the localization initiative now stands at Rs5.1 billion. The company said the program is part of its long-term strategy to gradually increase the local production of automotive parts and reduce reliance on imports.
According to the notice, the investment will be used for plant and machinery, moulds, dies, equipment, and other related infrastructure required for local manufacturing of components.
Earlier, the company had also suggested that the upcoming Auto Policy 2026–31 should maintain a minimum 40% tariff differential between Completely Knocked Down (CKD) and Completely Built Up (CBU) vehicles to safeguard local industry competitiveness and employment.
