It has been reported by the Indus Motor Company (IMC), the company that assembles and sells the Toyota cars in Pakistan, that yearly profit of the company fell 63% in the fiscal year 2020 and the coronavirus pandemic is not the only reason.
The sales of the vehicles in the country were already dropping when the novel coronavirus emerged and the lockdown was imposed by the government just like the rest of the world.
It is pertinent to mention here that before the outbreak of the coronavirus pandemic, the interest rates were high at 13.25% which made the car financing expensive for the buyers. Some of the research analysts of the country say that it has also been one of the reasons for dropping the sales of vehicles across the country.
The biggest reason behind the fall of the sales was the devaluation of the Pakistani rupee, which forced the automobile makers to increase the prices of the cars.
“Reduced economic activity and high-interest rates hampered auto sales during the year as total units sold decreased by 57% to 28,378 units compared to 65,399 units in financial year 2019,” a BMA Research note said.
Among all the variants of the company, the Toyota Corolla was the most affected one as the number of the cars sold in 2020 was declined to 22,140 units compared to 56,720 units in the last year 2019.