LAHORE: In a turn of events Toyota Indus Motor Company (IMC) has reduced the prices for its entire completely-knocked-down (CKD) vehicle portfolio.
The revised prices for its Yaris lineup are as follows:
The revised prices for its Corolla lineup are as follows:
The revised prices for its Hilux lineup are as follows:
The revised prices for its Fortuner lineup are as follows:
Suneel Munj, CEO PakWheels, reported that the price revision is a result of the Pakistani Rupee appreciating against the US Dollar.
These prices also come days after the Pakistan Automotive Manufacturers Association (PAMA) reported the sales figures for the month of July with Toyota recording a 62% sales decline across its entire portfolio.
Asghar Ali Jamali, CEO IMC, had earlier told Profit that the price increases this summer were a result of the depreciating Pakistani Rupee. Therefore this downward revision is the consequence of the Rupee regaining a lot of its lost value.
It remains to be seen whether other automotive manufacturers follow suit and adopt IMC’s methods. It is pertinent to note that IMC was the only auto manufacturer that had provided a refund to its customers last month which now remains an aberration from the industry norm as no one else did so.
However, this time other automotive manufacturers may indeed do what IMC has just done. This is because of industry expectations of lower demand going forward. Jamali has cited a 40-50% demand contraction to Profit in the automotive industry going forward.
Muhammad Faisal, President Automotive Division at Lucky Motors, had told Profit earlier in June that he predicts FY 2022-23 to have 40% lower volumes compared to FY 2021-22.
Given the prevailing inflation rates and the State Bank of Pakistan’s (SBP) change in prudential requirements to limit auto finance, downward price reductions may be the strategy of choice for automotive manufacturers to spur sales once more.
If the Pakistani Rupee continues to gain against the US Dollar then another tactic automotive manufacturers, particularly the Lucky Motors and the Big 3 of IMC, Honda Atlas Cars, and Pak Suzuki Motors can employ to galvanize the market going into the next year is to launch their crossover SUV line-up.
Profit had reported earlier how the prevailing exchange rate between the US Dollar and Pakistani Rupee was perhaps the main impediment in them doing so at an affordable rate.