Toyota Pakistan Aims to Cut Petrol Imports with Hybrid Cars

Jawad

31 Aug 2023

368

Toyota Pakistan Aims to Cut Petrol Imports with Hybrid Cars

Toyota Indus Motor Company (IMC) CEO, Ali Asghar Jamali, underscores the urgency for Pakistan to take strategic measures across all fronts in order to avert a looming environmental catastrophe as the nation contends with the profound impacts of climate change.

A press release from Toyota highlighted data from the Global Carbon Budget 2022. The figures revealed that Pakistan's CO2 emissions escalated by 9%, reaching 229.51 million tons in 2021 compared to 210.38 million tons in 2020.

Jamali advocates hybrid electric vehicles (HEVs) as a robust, long-term solution to the economic and environmental challenges Pakistan faces. HEVs not only stimulate exports, employment, and macroeconomic objectives but also curtail the need for imports.

He emphasizes that HEVs are particularly effective for reducing carbon dioxide emissions in countries heavily reliant on fossil fuels, such as Pakistan and India, where conventional fuels power 62% and 75% of vehicles and machinery, respectively.

Pointing out Toyota's commitment, Jamali discloses that the company has invested $100 million to establish HEV manufacturing in Pakistan. Toyota is on the brink of unveiling the locally assembled Corolla Cross Hybrid, the country's first locally produced HEV SUV. He calculates that the adoption of 30,000 HEVs will save an impressive $37 million annually in fuel import expenses.

Despite grappling with a 55% production decline, IMC has retained its workforce without layoffs. Jamali underscores the numerous hurdles confronting the domestic automobile sector: dwindling demand, rapid price surges, high auto financing costs, elevated taxes, and weakening macroeconomic conditions.

In a disconcerting trend, IMC's sales volume plummeted by 58% between January and June 2023. Jamali attributes this setback to prolonged delays in acquiring Letters of Credit (LCs), which have severely impacted production and hindered sales.

Jamali further spotlights the concerning surge in used car imports surpassing Original Equipment Manufacturer (OEM) production. Over 6,000 used cars were imported in the 2022-23 period, with a staggering 1,800 imported in May and June alone.

In light of Pakistan's minimal foreign exchange reserves as per the State Bank of Pakistan (SBP), Jamali appeals to the government to shift its focus from importing used cars to supporting the burgeoning local auto industry, which has invested in producing vehicles domestically. He asserts that the influx of used cars hampers the progress achieved through viable localization efforts, jeopardizing parts manufacturing and future localization initiatives.

Hybrid cars Toyota Pakistan Petrol imports Fuel efficiency Sustainable transportation Green technology Automotive industry Energy conservation Ecofriendly driving Petrol reduction

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