Indus Motor Company Limited

Final Project Report

Submitted By
Talha Chugtai
Muhammad Tayyab Shaukat
Chauduary Muhammad Arsalan
Zeeshan Mazhar
BBA-35
Indus Motor Company Report

Contents
1. Indus Motor Company Limited...............................................................................................1

1.1. Vision of Indus Motor.......................................................................................................1

1.2. Mission of Indus Motor.....................................................................................................1

1.3. Core Values of Indus Motor..............................................................................................1

1.4. Principles of Indus Motor.................................................................................................1

1.5. CSR Policy........................................................................................................................2

1.5.1. Preamble....................................................................................................................2

1.5.2. Customers..................................................................................................................2

1.5.3. Employees..................................................................................................................2

1.5.4. Business Partners.......................................................................................................3

1.5.5. Shareholders..............................................................................................................3

1.5.6. Global Society / Local Communities.........................................................................3

1.6. Strategic Objectives..........................................................................................................4

1.6.1. Achieving Market Leadership by Delivering Value to Customers...........................4

1.6.2. Optimizing Cost by Kaizen.......................................................................................4

1.6.3. Bringing Toyota Quality to Pakistan.........................................................................4

1.6.4. Respecting their people..............................................................................................4

1.6.5. Become a Good Corporate Citizen............................................................................5

1.7. Board of Directors.............................................................................................................5

1.8. Management Chart............................................................................................................7

2. Portfolio of Company..............................................................................................................9

2.1. Products of company.........................................................................................................9

2.2. Recent Project.................................................................................................................10

2.3. Indus Motor Competitors................................................................................................11

Indus Motor Company Report

2.3.1. Competition in Pakistan, Auto Policy & Future of Indus Motor Company............11

2.3.2. Employees................................................................................................................12

3. Manufacturing Process..........................................................................................................13

3.1. Manufacturing Process Chart..........................................................................................13

3.2. Process:...........................................................................................................................14

3.2.1. Components.............................................................................................................14

3.2.2. Chassis.....................................................................................................................14

3.2.3. Body.........................................................................................................................14

3.2.3. Paint.........................................................................................................................15

3.2.4. Interior assembly.....................................................................................................16

3.2.5. Mate.........................................................................................................................16

4. Quality Control......................................................................................................................17

5. Conclusion.............................................................................................................................18
Indus Motor Company Report

1. Indus Motor Company Limited

Indus Motor Company Limited (IMC) is a joint venture between certain companies of
House of Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of
Japan. Incorporated in 1989, the Company manufactures and markets Toyota brand vehicles in
Pakistan. These include several variants of the flagship ‘Corolla’ in the passenger car segment,
‘Hilux’ in the light commercial vehicle segment and ‘Fortuner’ in Sports Utility Vehicle
segment.
Vision of Indus Motor
“To be the most respected and successful enterprise, delighting customers with a wide range
of products and solutions in the automobile industry with the best people and the best
technology.”
Mission of Indus Motor
IMC’s Mission is reflected in the Company’s slogan “Action, Commitment and Teamwork to
become # 1 in Pakistan”.
Core Values of Indus Motor
• World class production quality
• Achieving the ultimate goal of complete customer satisfaction
• Being seen as the best employer
• Fostering the spirit of teamwork
• Inculcating ethical and honest practices
Principles of Indus Motor
The Toyota business is guided by seven principles
 Honor the language and spirit of the law of every country and region, and undertake open
and fair business activities to be a strong corporate citizen of the world.
 Respect the culture and customs of every country and region, and contribute to economic
and social development through corporate activities in their respective communities.
 Dedicate their business to providing clean and safe products and to enhancing the quality
of life everywhere through all of their activities.
 Create and develop advanced technologies and provide outstanding products and services
that fulfill the needs of customers worldwide.
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Indus Motor Company Report

 Foster a corporate culture that enhances both individual creativity and the value of
teamwork, while honoring mutual trust and respect between labor and management.
 Pursue growth through harmony with the global community via innovative management.
 Work with business partners in research and manufacturing to achieve stable, long-term
growth and mutual benefits, while remaining open to new partnerships.
CSR Policy
1.1.1. Preamble
Toyota Motor Corporation and its subsidiaries, take initiative to contribute to the
harmonious and sustainable development of society to earth through all business activities that
they carry out in each country and region, based on their Guiding Principles. They comply with
local, national and international laws and regulations as well as the spirit thereof, and conduct
their business operations with honesty and integrity. In order to contribute to sustainable
development, they believe that management interacting with its stakeholders as described below
is of considerable importance, and they will endeavor to build and maintain sound relationships
with their stakeholders through open and fair communication. They expect their business
partners to support this initiative and act in accordance with it.
1.1.2. Customers
Based on “Customer First” philosophy, Indus Motor develops and provide innovative,
safe and outstanding high-quality products and services that meet a wide variety of
customer demands to enrich the lives of people around the world.
Indus Motor will endeavor to protect the personal information of customers and everyone
else they are engaged in business with, in accordance with the letter and spirit of each
country and region’s privacy laws.
1.1.3. Employees
Indus Motor respects its employees and believes that the success of their business is led
by each individual’s creativity and solid teamwork. They support personal growth for
their employees.
Indus Motor supports equal employment opportunities and diversity and inclusion for
their employees. They do not discriminate against them.
Indus Motor strives to provide fair working conditions and to maintain a safe and healthy
working environment for all employees.

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Indus Motor respects and honors the human rights of people involved in their business
and, in particular, do not use or tolerate any form of forced or child labor.
Through communication and dialogue with their employees, Indus Motor builds and
shares the value of “Mutual Trust and Mutual Responsibility,” working together for the
success of employees and the company. They recognize their employees’ right to freely
associate, or not to associate, complying with the laws of the countries and regions in
which they operate.
Management of each company takes leadership in fostering a corporate culture and
implementing policies that promotes ethical behavior.
1.1.4. Business Partners
Indus Motor respects their business partners such as suppliers and dealers and work with
them through long-term relationships to realize mutual growth based on mutual trust.
Whenever they seek a new business partner, they are open to any and all candidates,
regardless of nationality or scale, and evaluate them based on their overall strengths.
Indus Motor maintains fair and free competition in accordance with the letter and spirit of
each country and region’s competition laws.
1.1.5. Shareholders
Indus Motor strives to enhance corporate value while achieving stable and long-term
growth for the benefit of their shareholders.
Indus Motor provides their shareholders and investors with timely and fair disclosure on
their operating results and financial condition.
1.1.6. Global Society / Local Communities
Environment
Indus Motor aims for growth that is in harmony with the environment by seeking to minimize the
environmental impact of their business operations, such as by working to reduce the effect of
their vehicles and operations on climate change and biodiversity. They strive to develop,
establish, and promote technologies that enable the environment and economy to coexist
harmoniously, and to build close and cooperative relationships with a wide spectrum of
individuals and organizations involved in environmental preservation.
Community

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They implement their philosophy of respect for people by honoring the culture, customs,
history and laws of each country and region.
They constantly pursue safer, cleaner, and improved technologies that satisfy the
evolving needs of society for sustainable mobility.
They do not tolerate bribery of or by any business partner, government agency, or public
authority, and maintain honest and fair relationships with government agencies and
public authorities.
Social contribution
Wherever they do business, they actively promote and engage, both individually and with
partners, in social contribution activities that help strengthen communities and contribute to the
enrichment of society.
Strategic Objectives
1.1.7. Achieving Market Leadership by Delivering Value to Customers
Following their “Customer First” philosophy in manufacturing and providing high quality
vehicles and services that meet the needs of Pakistani customers.
Enhancing the quality and reach of their 3S Dealership Network.
Employing customer insight and feedback for continuous corporate renewal, including
product development, improving service and customer care.
1.1.8. Optimizing Cost by Kaizen
Fostering a Kaizen culture and mindset at IMC, its Dealers and Vendors.
Implementing Toyota Production System.
Removing waste in all areas and operating in the lowest cost quartile of the industry.
1.1.9. Bringing Toyota Quality to Pakistan
Maximizing QRD (Quality, Reliability and Durability) by built-in engineering.
Transferring technology and promoting indigenization at IMC and its Vendors.
Raising the bar in all support functions to meet Toyota Global Standards.
1.1.10. Respecting their people
Treating employees as the most important sustainable competitive resource.
Providing a continuous learning environment that promotes individual creativity and
teamwork.

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Supporting equal employment opportunities, diversity and inclusion without

discrimination.
Building competitive value through mutual trust and mutual responsibility between the
Indus Team and the Company.
1.1.11. Become a Good Corporate Citizen
Following ethical business practices and the laws of the land.
Engaging in philanthropic and social activities that contribute to the enrichment of the
Pakistani society, especially in areas that are strategic to both societal and business needs
e.g. road safety, technical education, environment protection, etc.
Enhancing corporate value and respect while achieving a stable and long term growth for
the benefit of their shareholders.
Board of Directors
Ali S. Habib
Chairman
Ali S. Habib is the Chairman of Indus Motor Company Limited and is also the Founding
Director of the Company. He also serves as a Member on the Board of Directors of Thal
Limited, Shabbir Tiles & Ceramics Limited and Habib Metropolitan Bank Limited. He is a
graduate in Mechanical Engineering from the University of Minnesota, USA. He has attended
the PMD Program at Harvard University.
Yuji Takarada
Director and Vice Chairman
Yuji Takarada has been appointed as a Director on the Board and Vice Chairman of
Indus Motor Company Limited with effect from January 2018. He has been serving at Toyota
Motor Corporation for over 25 years and has worked in different capacities. He has also served
as Marketing Director for Toyota Astra Motor (TAM). He has completed his Bachelor’s degree
in Sociology from Hitotsubashi University in Japan.
Ali Asghar Jamali
Chief Executive
Ali Asghar Jamali was appointed as Chief Executive Officer in January 2017. He has
been with the Company since October 2000 and has served in key roles in various departments,

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owing to which he has acquired rich experience in end-to-end management of company

operations. He is a Fellow of the Institute of Chartered Accountants of Pakistan and has attended
the Advanced Management Program at Harvard University and the Accelerated Management
Program at Wharton School of Business in the USA.
Parvez Ghias
Director
Parvez Ghias was Chief Executive of the Company from 2005 to 2016 and continues to
serve Indus Motor as Director on the Board. He is currently the Chief Executive Officer at Habib
University Foundation and Vice Chairman - Automotive for the House of Habib. He also serves
as a Director on the boards of Dawood Hercules Corporation Limited and Shell Pakistan
Limited.. Prior to joining the Company and House of Habib, he was the Vice President and CFO
at Engro Corporation (formerly Engro Chemical Pakistan Limited) and served as Director on
Engro subsidiaries. He is a Fellow of the Institute of Chartered Accountants from England &
Wales and holds a Bachelor’s Degree in Economics and Statistics.
Azam Faruque
Independent Director
Azam Faruque was elected as a Director of the Company in October 2014. He is a
Director and CEO of Cherat Cement Co. Limited, a GhulamFaruque Group (GFG) company.
Apart from 27 years he has spent in the cement industry and other GFG businesses, he has served
as a member on the Board of various public and private sector institutions. Currently, he is a
Director of Faruque (Pvt) Limited, Greaves Pakistan (Pvt) Limited, Unicol Limited, International
Industries Limited, Atlas Battery Limited, Habib University Foundation and State Bank of
Pakistan. He is an Electrical Engineering and Computer Science graduate from Princeton
University, USA, and has also completed his MBA with High Honors from the University of
Chicago.
Mohamedali R. Habib
Director
Mohamedali R. Habib is the Founding Director of Indus Motor Company Limited. He
has been an Executive Director of Habib Metropolitan Bank Limited since 2004 and currently
serves as the Chairman of the Board of Directors of the Bank. He also serves as a Member on the
Board of Thal Limitedand Habib Insurance Company Limited. He was appointed as Joint-

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President & Division Head (Asia) & Member of General Management of Habib Bank AG Zurich
in 2011.
He has a graduate degree in Business Management – Finance from Clark University, USA.
Imran A. Habib
Director
Imran A. Habib was appointed as Director of Indus Motor Company Limited in February
2019. He is Senior Vice President at Habib American Bank in New York, USA. Prior to his
transfer to the United States in 2016, he served as Senior Vice President with Habib Bank AG
Zurich in the United Arab Emirates from 2008-2016. He has a graduate degree in Business
Administration from Bryant University (2002), USA, and has attended the Program for
Leadership Development at Harvard Business School.
Tetsuya Ezumi
Director
Tetsuya Ezumi was appointed as Director of Indus Motor Company Limited in May
2018. He has been associated with Toyota Motor Corporation from1985 to 2017, during which
time he has held various senior positions. He joined Toyota Tsusho Corporation in 2018 and he
is presently Executive Officer of Toyota Tsusho Corporation and has served as director on the
Board of various Toyota Group companies in countries around the globe.
He is a graduate from Faculty of Law of Kagawa University, Japan.

Sadatoshi Kashihara
Director
Sadatoshi Kashihara was appointed as Director of Indus Motor Company Limited in
January 2017 and also serves as Director Manufacturing. He has been with Toyota Group since
1990 and has held various senior executive positions. He has vast experience in the areas of
Production and Plant Engineering at various Toyota plants in the world.
He is a graduate from the Miyazaki University, Japan
Susumu Matsuda
Director

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Indus Motor Company Report

Susumu Matsuda was appointed as a Director of Indus Motor Company Limited in

February 2018. Currently he is serving as the President of Toyota Motor Asia Pacific Pte Ltd and
Deputy Chief Executive Officer of Asia & China region, Toyota. He is presently director on the
Board of Directors of various Toyota Group companies in countries around the globe.
He graduated from Kobe University, Japan.
Management Chart

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Indus Motor Company Report

2. Portfolio of Company
Products of company
Indus motor products list include several variants of the flagship ‘Corolla’ in the
passenger car segment, ‘Hilux’ in the light commercial vehicle segment and ‘Fortuner’ in Sports
Utility Vehicle segment.
 Cars
 Toyota Yaris
 Toyota Corolla
 Toyota Camry
 Toyota Prius
 MPVs
 Toyota Avanza
 SUVs
 Toyota Rush
 Toyota Fortuner
 Toyota Prado
 Toyota Land Cruiser
 Pickups
 Toyota Hilux Single Cabin
 Toyota Hilux E
 Toyota Hilux Revo
 Buses & Vans
 Hiace
 Coaster

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Recent Project
Indus Motor Company launches Toyota Yaris in Pakistan

Indus Motor Company (IMC), manufacturer of Toyota vehicles in Pakistan, has announced the
launch of all-new Toyota Yaris at price starting from Rs2.349 million. The company commenced
bookings of its new vehicle on March 19, 2020. Staying true to its focus on continuous
improvement and high level of localization, IMC has invested around Rs8 billion in all-new
model Toyota Yaris which will give customers a value for money car, catering to the discerning
needs of the Pakistani consumers. Under the development concept of “The New Value Pioneer”
we have focused on enhancing the design and comfort to offer the best in class value to our
customers. With our Company’s commitment to delight customers with a wide range of
products, Toyota Yaris will be an addition to our wide product range, providing customers with a
choice based on their driving needs.” Toyota Yaris will be available in 1300cc and 1500cc
engine displacement in 6 variants. The introductory ex-factory price for the 1300cc sedan starts
at Rs2.349 million for GLi MT whilst the ex-factory price for the 1500cc top-of-the-line version,
1.5 ATIV X CVT is Rs2.809 million.

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Indus Motor Company Report

Indus Motor Competitors

Top competitors includes Gulf states Toyota with 2000 people and $9 billion revenue, Abdullah
Abdulghani & Bros with 2387 people and $458 million revenue, Astra International having
226105 employees and $16 Billion revenue, The Abdul Latif Jameel Poverty Action Lab with
16000 employees and $3 Billion revenue.
2.1.1. Competition in Pakistan, Auto Policy & Future of Indus Motor Company
Despite Corolla's excellent popularity that it has maintained through every phase in the country,
there is no denying that the three Japanese carmakers have maintained a monopoly in the car
segment. And the auto industry has also enjoyed protection from the government in the form of
much high import duties and other similar advantages. The existing capacity of the three
carmakers is about 250,000 and about 75 percent of the capacity is being utilized.
On the demand side however; limited choice, limited brands and models in different segment
have over time forced consumers to shift to cheaper, and better quality imported used cars.
Keeping that in mind, the government came up with an auto policy last year that gave incentives
for new investors-Greenfield projects as well as revitalization of sick units.
This has led to several big names expressing interest in Pakistan's growing appetite for cars and
at least three new entrants have confirmed. French carmaker Renault; Korea's Hyundai and kA
have all signed on with local partners; Ghandhara Nissan, Nishat and Younus Brothers' Lucky
respectively to bring new models into the Pakistani market. German Audi is in the process of
negotiations.
This opens the door for greater competition in a market that is seeing a growth in average income
levels but still has a very low car penetration rate. New plants, new variety, more models, and
more choice tie in well for the industry's growth but it also means tougher competition.
With more variety, it is very possible that the market share of existing carmakers will get
overridden in the process. Prices may also see a downward turn once the new players establish
local presence in the market- (initially new models will be imported in CBU form).
As we have said earlier also: "Some may assume that it will take years for new entrants to find
their footing in an industry where Honda, Toyota and Suzuki have been operating for decades
and have localisation too, one can't undermine the effort and investment that would be

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potentially put in by the local partners (Nishat and Lucky) who are really good at doing their
job".
Keeping that in mind, Pakistan Suzuki (PSMC) announced that it is gearing to invest up to $600
million in the sector in a new plant and bring on a new fleet if the government gives incentives to
them. Perhaps they are still in negotiation phase but it is a start, and the need of an hour. The
company only a few weeks ago introduced Ciaz to the market-in competition with Corolla. There
is a lot of mobility right now and INDU will have to up its game also.
The interesting bit in all this is that-as we have observed-while smaller cars will get traction in
the future as urbanization expands and income levels rise; the high-end Sedans will also see
increased growth. At higher income levels, the 1300cc and above category of cars always gain
more popularity. Since most of the new brands are expected to bring cars in this category-from
Renault to KA-where Honda's two variants and Toyota's Corolla also operate; the competition
will be extremely fierce in this segment, than others.
2.1.2. Employees
The Company has a workforce of 3,349 persons at year end. It invests heavily in training
the team members and management employees and creating a culture of high performing and
empowered teams who work seamlessly across the various processes in search of quality and
continuous improvement.

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Indus Motor Company Report

3. Manufacturing Process
The manufacture of motor vehicles involves the manufacture and assembly of the final product
from a number of metallic, plastic and electrical components. A wide range of processes are
involved including metal cutting, pressing, polishing, grinding, welding, plating, & painting. The
vehicle industry produces many parts itself (e.g. by subsidiaries), while other parts are
purchased. Engines are cast from aluminium or iron, and further processed in engine plants.
Vehicle bodies are generally formed out of sheet steel, although there is a trend toward more
plastic, reinforced fibreglass and aluminium parts in vehicle bodies.
Manufacturing Process Chart

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Indus Motor Company Report

Process:
3.1.1. Components
1. The automobile assembly plant represents only the final phase in the process of
manufacturing an automobile, for it is here that the components supplied by more than
4,000 outside suppliers, including company-owned parts suppliers, are brought together
for assembly, usually by truck or railroad. Those parts that will be used in the chassis are
delivered to one area, while those that will comprise the body are unloaded at another.
3.1.2. Chassis
2. The typical car or truck is constructed from the ground up (and out). The frame forms the
base on which the body rests and from which all subsequent assembly components
follow. The frame is placed on the assembly line and clamped to the conveyer to prevent
shifting as it moves down the line. From here the automobile frame moves to component
assembly areas where complete front and rear suspensions, gas tanks, rear axles and drive
shafts, gear boxes, steering box components, wheel drums, and braking systems are
sequentially installed.
3. An off-line operation at this stage of production mates the vehicle's engine with its
transmission. Workers use robotic arms to install these heavy components inside the
engine compartment of the frame. After the engine and transmission are installed, a
worker attaches the radiator, and another bolts it into place. Because of the nature of
these heavy component parts, articulating robots perform all of the lift and carry
operations while assemblers using pneumatic wrenches bolt component pieces in place.
Careful ergonomic studies of every assembly task have provided assembly workers with
the safest and most efficient tools available.
3.2.3. Body
4. Generally, the floor pan is the largest body component to which a multitude of panels and
braces will subsequently be either welded or bolted. As it moves down the assembly line,
held in place by clamping fixtures, the shell of the vehicle is built. First, the left and right
quarter panels are robotically disengaged from pre-staged shipping containers and placed
onto the floor pan, where they are stabilized with positioning fixtures and welded.
5. The front and rear door pillars, roof, and body side panels are assembled in the same-
tafashion. The shell of the automobile assembled in this section of the process lends itself

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to the use of robots because articulating arms can easily introduce various component
braces and panels to the floor pan and perform a high number of weld operations in a
time frame and with a degree of accuracy no human workers could ever approach. Robots
can pick and load 200-pound (90.8 kilograms) roof panels and place them precisely in the
proper weld position with tolerance variations held to within .001 of an inch. Moreover,
robots can also tolerate the smoke, weld flashes, and gases created during this phase of
production.
6. As the body moves from the isolated weld area of the assembly line, subsequent body
components including fully assembled doors, deck lids, hood panel, fenders, trunk lid,
and bumper reinforcements are installed. Although robots help workers place these
components onto the body shell, the workers provide the proper fit for most of the bolt-on
functional parts using pneumatically assisted tools.
3.1.3. Paint
7. Prior to painting, the body must pass through a rigorous inspection process, the body in
white operation. The shell of the vehicle passes through a brightly lit white room where it
is fully wiped down by visual inspectors using cloths soaked in hi-light oil. Under the
lights, this oil allows inspectors to see any defects in the sheet metal body panels. Dings,
dents, and any other defects are repaired right on the line by skilled body repairmen.
After the shell has been fully inspected and repaired, the assembly conveyor carries it
through a cleaning station where it is immersed and cleaned of all residual oil, dirt, and
contaminants.
8. As the shell exits the cleaning station it goes through a drying booth and then through an
undercoat dip—an electrostatically charged bath of undercoat paint (./Volume-
1/Paint.html) (called the E-coat) that covers every nook and cranny of the body shell,
both inside and out, with primer. This coat acts as a substrate surface to which the top
coat of colored paint adheres.
9. After the E-coat bath, the shell is again dried in a booth as it proceeds on to the final paint
operation. In most automobile assembly plants today, vehicle bodies are spray-painted by
robots that have been programmed to apply the exact amounts of paint to just the right
areas for just the right length of time. Considerable research and programming has gone
into the dynamics of robotic painting in order to ensure the fine "wet" finishes we have

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come to expect. Our robotic painters have come a long way since Ford's first Model Ts,
which were painted by hand with a brush.
10. Once the shell has been fully covered 1 V with a base coat of color paint and a clear top
coat, the conveyor transfers the bodies through baking ovens where the paint is cured at
temperatures exceeding 275 degrees Fahrenheit (135 degrees Celsius).
3.1.4. Interior assembly
11. The painted shell proceeds through the interior assembly area where workers assemble all
of the instrumentation and wiring systems, dash panels, interior lights, seats, door and
trim panels, headliners, radios, speakers, all glass except the automobile windshield,
steering column and wheel, body weather strips, vinyl tops, brake and gas pedals,
carpeting, and front and rear bumper fascias.
12. Next, robots equipped with suction cups remove the windshield from a shipping
container, apply a bead of urethane sealer to the perimeter of the glass, and then place it
into the body windshield frame. Robots also pick seats and trim panels and transport
them to the vehicle for the ease and efficiency of the assembly operator. After passing
through this section the shell is given a water test to ensure the proper fit of door panels,
glass, and weather-stripping. It is now ready to mate with the chassis.
3.1.5. Mate
13. The chassis assembly conveyor and the body shell conveyor meet at this stage of
production. As the chassis passes the body conveyor the shell is robotically lifted from its
conveyor fixtures and placed onto the car frame. Assembly workers, some at ground level
and some in work pits beneath the conveyor, bolt the car body to the frame. Once the
mating takes place the automobile proceeds down the line to receive final trim
components, battery, tires, anti-freeze, and gasoline.
14. The vehicle can now be started. From here it is driven to a checkpoint off the line, where
its engine is audited, its lights and horn checked, its tires balanced, and its charging
system examined. Any defects discovered at this stage require that the car be taken to a
central repair area, usually located near the end of the line. A crew of skilled trouble-
shooters at this stage analyze and repair all problems. When the vehicle passes final audit
it is given a price label and driven to a staging lot where it will await shipment to its
destination.

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4. Quality Control
All of the components that go into the automobile are produced at other sites. This means
the thousands of component pieces that comprise the car must be manufactured, tested,
packaged, and shipped to the assembly plants, often on the same day they will be used. This
requires no small amount of planning. To accomplish it, most automobile manufacturers require
outside parts vendors to subject their component parts to rigorous testing and inspection audits
similar to those used by the assembly plants.
In this way the assembly plants can anticipate that the products arriving at their receiving
docks are Statistical Process Control (SPC) approved and free from defects.
Once the component parts of the automobile begin to be assembled at the automotive
factory, production control specialists can follow the progress of each embryonic automobile by
means of its Vehicle Identification Number (VIN), assigned at the start of the production line. In
many of the more advanced assembly plants a small radio frequency transponder is attached to
the chassis and floor pan. This sending unit carries the VIN information and monitors its
progress along the assembly process.
Knowing what operations the vehicle has been through, where it is going, and when it
should arrive at the next assembly station gives production management personnel the ability to
electronically control the manufacturing sequence.
Throughout the assembly process quality audit stations keep track of vital information
concerning the integrity of various functional components of the vehicle. This idea comes from a
change in quality control ideology over the years.
Formerly, quality control was seen as a final inspection process that sought to discover
defects only after the vehicle was built. In contrast, today quality is seen as a process built right
into the design of the vehicle as well as the assembly process. In this way assembly operators can
stop the conveyor if workers find a defect.
Corrections can then be made, or supplies checked to determine whether an entire batch
of components is bad. Vehicle recalls are costly and manufacturers do everything possible to

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ensure the integrity of their product before it is shipped to the customer. After the vehicle is
assembled a validation process is conducted at the end of the assembly line to verify quality
audits from the various inspection points throughout the assembly process.
This final audit tests for properly fitting panels; dynamics; squeaks and rattles;
functioning electrical components; and engine, chassis, and wheel alignment. In many assembly
plants vehicles are periodically pulled from the audit line and given full functional tests. All
efforts today are put forth to ensure that quality and reliability are built into the assembled
product.

5. Conclusion
The report focused on assembling industry company Indus Motor Company Limited.
Indus Motor Company Limited (IMC) is a joint venture between certain companies of House of
Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of Japan
incorporated in 1989. Indus Motor is seller of great flagship variants of cars including Corolla,
Hilux and Fortuner.
The long term focus of Indus Motor is to become most respectable and successful company
providing number of products in automobile industry with best quality and people. Indus Motor
complies with local, national and international laws and regulations as well as the spirit thereof,
and conduct their business operations with honesty and integrity. Objectives of company are to
achieve market leadership by delivering value to customers, optimizing cost by Kaizen, bringing
Toyota quality to Pakistan, respecting Pakistani people, and become a good corporate citizen.
Products variety of Indus Motor includes cars, MPVs, SUVs, pickups and buses and vans. Indus
Motor has recently launched Toyota Yaris in Pakistan at a price of Rs2.349 million. The
competitors of Indus Motor within Pakistan includes Suzuki Motors, Honda Motors. The
manufacturing process of automobile includes components to classis to body to paint to interior
assembly to mate. The quality is highly controlled during manufacturing to final products
formation.

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