IMC cranking up capacity 20pc next year amid likely record 2021 output

KARACHI: Driven by all-time high demand, Indus Motors Company (IMC) is expanding production capacity to reach 90,000 units by 2022 end, a top official said on Thursday.

“To meet the increasing demand from our valued customers Indus Motor is striving to increase production capacity by further 20 percent by April 2022,” said Ali Asghar Jamali, CEO IMC, talking to a group of journalists at his office.

“Production of Fortuner and Revo will be increased by 50 percent.”

Jamali said it was good for the automotive sector as there was a huge increase in demand, which he claimed was unprecedented in his 21 years in the auto industry.

“IMC may go for the highest ever production this year crossing the previous highest production of 65,000 vehicles in a year,” he said adding that by the end of next year, IMC would be producing around 90,000 vehicles.

Jamali said the recently announced $100 million investment was completely for Hybrid vehicles localised production and an additional $30 million would be spent on plant expansion.

“Hybrids will help achieve all the government’s macroeconomic and environmental goals,” he said, adding that infrastructure was ready for hybrid vehicles in the country and it would help generate jobs through localisation.

“It is our ideal target the launch of every new model should have 50 percent hybrid share in the future. Hybrid vehicles will save up to 50 percent fuel directly impacting the carbon footprint and carbon emission,” he said.

The IMC chief further said the company was proud to be the leader in bringing technological advancement in Pakistan along with the development of the local engineering base.

Talking about Electric Vehicles (EVs), Jamali said it was a good and fuel-saving technology but IMC would not be the first to launch it in Pakistan.

He said there was the requirement of infrastructure in the launching of EV vehicles, which was not available in the country.

“You can move from home to office in Karachi but you cannot travel to Sukkur from Karachi, as there is no infrastructure,” he said.

Besides, he said, EV vehicles in Pakistan would not be beneficial to the environment in Pakistan.

“It is for those countries where electricity is produced by wind, solar or atomic energy. “We produce almost 80 percent electricity from coal and other fossil fuels, which is not environment friendly.”

He said hybrid vehicles had the ability to become EVs for 70 to 80 percent and saved fuel without any plug.

Charging time of the EV was also a problem, as people couldn’t afford to spend that much time at power stations. ‘Infrastructure needs development,” he said.

Talking about the increasing car prices, he said it was difficult to hold prices as exchange rate, freight charges, and raw material cost had increased manifold. “These factors really affect the prices of cars and they are beyond manufacturers’ control,” said Jamali.