LAHORE: The Indus Motor Company (IMC) will enhance production capacity by 20 per cent till April 2022 to meet the growing demand of customers, IMC chief executive officer (CEO) Ali Asghar Jamali said.

“We have recently started enhancing the capacity of our plant. This will increase the Innovative International Multi-purpose Vehicles (IMV) production by 22 per cent,” he said, while talking to a group of journalists on Wednesday.

Jamali also hinted at increasing the prices of vehicles in the wake of escalating global prices of raw material.

“A surge in the prices of raw materials, including steel, copper and aluminum is being witnessed across the world. Additionally, the rupee devaluation is putting immense pressure on [the] Original Equipment Manufacturers (OEMs),” he said.

“Since March 2020, steel prices are up [by] a staggering 215 per cent. The prices of aluminum reached over $3,000/tonne this October, while the price of copper crossed $10,000/tonne in October 2021. The rupee’s erratic fluctuation remains a high concern as does the ensuing rising inflation and international commodity prices, which will continue to be vital factors that have an impact on the future financials of the company,” Jamali said.

Talking about the increasing car prices, he said, it was difficult to hold prices as the exchange rate, freight charges and raw materials cost have increased substantially.

“These factors affect the prices of cars and they are beyond the control of manufacturers,” he said, adding that the IMC was evaluating different options to pass on the minimum burden to the customers.

The IMC CEO also said Toyota has recently invested over $100 million for the local production of hybrid electric vehicle (HEV) in Pakistan.

“The investment is meant for the localisation of components, plant expansion and production preparation for the first HEV,” he said, adding that the IMC appreciates the government’s policies to encourage low carbon mobility solutions in line with the prime minister’s vision of a “Clean and Green Pakistan”.

“We believe strong hybrids are a practical and sustainable solution for achieving mass electrification in Pakistan. Thus, we are thrilled to bring the most efficient 4th generation HEV to our customers soon,” Jamali said.