Even Pakistan is going hybrid - Toyota announces CKD hybrid plans
Jason · Sep 9, 2021 12:00 PM
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Toyota is set to go ahead with local assembly (CKD) of hybrid cars in Pakistan. Indus Motor Company (IMC), the makers of Toyota cars over there announced their intentions via a notification sent to the Pakistan Stock Exchange (PSX).
In that PSX notification, IMC shared that it will invest USD$ 100 million (~RM 414 million) for the local production of hybrid electric vehicles (HEVs) over the next 3 years. This can be seen as Toyota's vote of confidence the Pakistan government's effort to encourage local production of environment-friendly vehicles.
In Pakistan's Finance Act 2021, only 4% customs duty on the import of parts for hybrid vehicles (HEV) will be applicable, while only 3% customs duty will be there on the import of parts for plug-in hybrid electric vehicles (PHEVs). What's more, sales tax on import and local supply of HEVs is 8.5% on cars up to 1,800cc and 12.75% for cars from 1,801cc to 2,500cc.
While Pakistan is accelerating towards greater acceptance and sales of hybrid vehicles, Malaysia is still flopping around with its National Automotive Policy, with no clear goal or intention as to which direction to take.
The last hybrid vehicle Toyota locally was the Toyota Camry Hybrid, which was discontinued in 2018.
The situation is always up for review on an annual basis, which prevents car brands from having any semblance of long-term planning when it comes to advocating hybrid vehicles. Why introduce a hybrid model that will then be taxed heavily and let it stagnate on the showroom floor?
Similarly, how to plan for CKD hybrid cars when the local government clearly have no clear specifications and expectations? Sure, Toyota did announce its intentions to CKD hybrids in Malaysia, but they also hinted that the National Automotive policy needs to be made clearer for better long-term planning.
Thai-spec Corolla Cross hybrid variant pictured - note the blue surrounds on the badge.
It pains us to say this, but perhaps Malaysia's automotive policymakers could learn a thing or two from their Pakistan counterparts, and stop being blinded by the so-called 'success' of just pseudo-national brands.
Jason's foremost passion is all things automotive, where he spent his formative working years as a Product Planner and Trainer. An Advanced Driving Instructor by training and an all-round enthusiast, Jason loves going into intricate details about driving dynamics. Will drive anything with 4 wheels and a steering.
