Indus Motor Company Limited (INDU), the maker of Toyota-brand vehicles in Pakistan, has announced an additional investment of Rs. 1.1 billion (approximately $3.94 million) to further enhance the localization of its production processes.

This decision was disclosed in a notice to the Pakistan Stock Exchange (PSX) on Monday.

The latest investment is an extension of the company’s ongoing initiative, initially announced in February 2024, which involved a Rs. 3 billion investment aimed at increasing the localization of parts and components for various existing vehicles. This initial phase is expected to conclude by the third quarter of 2025.

With the new investment, the total funding for the localization project now stands at Rs. 4.1 billion.

The Board of Directors approved this additional investment during a meeting on August 30, 2024. The company plans to complete this phase by the first quarter of 2026.

Indus Motor stated that this investment aligns with its broader strategy to boost the local production of vehicle parts, thereby reducing foreign exchange outflow and supporting the local automotive industry.

This initiative is also expected to generate employment and contribute positively to the national economy.

The funds will be allocated towards expenditures in plant and machinery, molds, dies, equipment, and other related expenses necessary for the localization of parts and components for various existing vehicles.

In a related development, Indus Motor launched its Hybrid Electric Vehicle (HEV) Corolla Cross last year, which was reported to be 50% localized in terms of its value.