LAHORE: In a massive revision in prices, Indus Motors Company (IMC) for the second time since January 2018 on Wednesday announced a price increase for its Corolla, Fortuner and Hilux vehicles by a whooping Rs300,000. It was previously speculated that Toyota-IMC might revise prices amid the recent rupee depreciation.
The State Bank of Pakistan (SBP) allowed the rupee to depreciate by 4 per cent to Rs115 to the US dollar in the inter-bank market on Wednesday. The central bank has so far devalued the currency by a total of 9 per cent, including the 5 per cent plunge in December 2017.
After the second round of rupee depreciation and price increase in raw materials, car prices were expected to increase by as much as 5 per cent. Following this adjustment prices for Corolla have increased by about Rs100,000 while others have seen a price increase of up to Rs300,000.
Earlier, the company had increased prices ranging from Rs50,000-60,000, however, these changes were a partial adjustment for the increase in the cost of production.
The increase in price will not only hit new customers, but also those who have already booked their cars with the company a few months ago.
IMC increased the rate of Grande CVT SR by Rs75,000, which is now priced at Rs2.33 million, Grande MT SR saw its price jump up Rs75,000 to Rs2.51 million. Altis 1.8 CVT’s price was raised by Rs75,000 to Rs2.46 million, Altis 1.8 MT by Rs75,000 to Rs2.33 million, Altis 1.8 MT by Rs75,000 to Rs2.27 million, XLI by Rs75,000 to Rs1.89 million, GLI AT by Rs100,000 to Rs2.12 million, GLI MT SE by Rs100,000 to Rs2.15 million, and the price of GLI MT increased from Rs100,000 to Rs2.04 million.
It also increased the price of IMV 1 Deckless, IMC 1 4X2, IMC 1 4X2 up spec, Revo G MT, Revo G AT, Revo V AT, Fortuner 4×2 Hi and Fortuner 4×4 in range of Rs100,000-300,000.
IMC Chief Executive Officer Ali Asghar Jamali made the announcement during a media workshop in Muzaffarabad, Azad Kashmir however exact prices were released later on.
“The increase in price will not only hit new customers, but also those who have already booked their cars with the company a few months ago.”.
Simply amazing and mind boggling. How can you charge the customers who booked the car months ago? It is Toyota’s failure to give the car after booking. The fact that they delayed for ‘months’ and this gives them the right to charge any price increase they want?
Why the regulatory bodies and relevant ministries of Pakistan are sleeping on this issue? New price should only be charged to new customers who after knowing the exact price that they are going to pay should be charged. Price should not be open ended as it is the main factor based on which car is booked, and assemblers should never be allowed to charge price increases to existing customers.
Good Article
Very informative Article. We hope soo , we can see new shapes and new cars in market soon.
An interesting discussion is worth comment. I think that you should write more on this topic,