Indus Motor Company (IMC) recently entered the league of automakers exporting vehicles to foreign countries after finalizing a partnership with Toyota Egypt. IMC, renowned for assembling Toyota vehicles in Pakistan, has now joined the ranks of companies exporting automobiles.
Master Changan Motors Limited (MCML) and Sazgar Engineering Works Limited (SEWL) are among the prominent names in this club.
Toyota Indus Motors Expands to Egypt
As per a Business Recorder report, Toyota IMC dispatched its inaugural consignment in July. The press release from the company affirmed that the primary shipment of partially processed raw material has been forwarded to Toyota Egypt.
The announcement mentioned that the agreement will mark the “start of a new chapter in terms of exports from Pakistan for any original equipment manufacturer (OEM), and there are plans in motion to sustain this progress.”
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The CEO of Toyota IMC, Ali Asghar Jamali, described it as a notable progress but advised to exercise caution as he believes it is “premature” to label it a pivotal moment for Pakistan’s struggling automobile sector.
The auto industry in Pakistan, which heavily depends on imported goods, faces challenges due to the limitations on Letters of Credit (LC).
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Importations are hindered by the country’s restricted foreign exchange reserves. Although the State Bank of Pakistan (SBP) has eased the restrictions, it will take some time for things to return to normal.
In relation to the export strategies of the company, Jamali expressed:
“At present, we are taking a small initial stride. Presently, within the nation, we face limitations regarding the availability of raw materials. These constraints would prevent us from exporting large quantities. Nevertheless, I maintain optimism. If Egypt’s trust in our capabilities grows, they might request increased exports of various components. Even exporting a single part to multiple markets would bolster our export figures. We anticipate that other manufacturers will also gain confidence and explore avenues for exporting.”