Indus Motor Company (IMC), the assembler of Toyota cars in Pakistan, has decided to start offering refunds to customers facing delays in deliveries. Profit has been able to confirm this from Asghar Ali Jamali, Chief Executive Officer at IMC. “We will give customers the option to avail a refund with the full interest. In case they choose not to opt for this (refund), they will have to wait at least 3 (more) months from the delivery month given on the Provisional Booking Order Form and (also) pay the price differential due to the exchange rate situation”, Jamali said.
The decision is expected to be announced soon and according to IMC is centered on facilitating customers amidst the current supply chain situation. Profit had reported earlier on how the State Bank of Pakistan’s (SBP) extended mandate over letters of credit for ckd imports had created panic amidst the automobile market.
All of this comes at a time when manufacturers were trying to negotiate a quota for ckd imports and relief from the KIBOR+3 penalty that they would be levied per the Auto Industry Development and Export Policy (AIDEP 2021-26).
Profit had inquired with local Toyota dealerships about the wait times on various Toyota models to understand the gravity of the delays and discovered the following:
This move is perhaps indicative of the end of the Pakistani automotive industry’s current car renaissance.
It is unknown whether other automobile manufacturers will follow suit or if this will be a standalone action on the part of IMC.