CEO of Indus Motors Ali Asghar Jamali has announced that Toyota Indus will increase the car prices due to the devaluation of Pakistani Rupee against the US dollar and Japanese yen from December 2017.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) collaborated to conduct the yearly Industry workshop. It was here that Jamali said,
“There’s a six percent devaluation in rupee value. It’s unsustainable to operate under the present prices.” Adding, “We will jack up prices soon due to rising value of the dollar and the yen. It is getting difficult to hold the prices further.”
Read also: Economic effects of devaluation of rupee
Within last three months, it will be the second time that Toyota Motors will increase its car prices. Pak Suzuki also recently increased its car prices for the second time in three months.
It started after the government allowed the rupee to get devalued by 5% against the dollar in December 2017.
The rise in vehicle prices has not affected the demand for new better vehicles in Pakistan. Also, the automakers are investing in the sector to improve the quality of their products.
Jamali said, “Indus Motor also has invested over Rs4 billion to de-bottleneck its production facility and increase its capacity by 20 percent i.e. up to 75,000 units annually by the second quarter of 2018. We procure Rs150 million worth of local parts every day from our local vendors which amount to Rs40 billion annually, which is proof of the high level of indigenization and local vendor development.”
Talking about Corolla he said, “Our flagship brand Corolla is ranked 23rd among 170 countries, with highest sales in the Asia Pacific and 4th highest sales in the world. The locally produced Corolla is equipped with the best-in-class quality and safety features and has recently received the NCAP 4 star rating. With recent investments of $40 million in the paint shop, our production capacity has reached to 75000 units annually.”
On IMC commitment of serving Pakistan, he said, ‘IMC is a staunch promoter of “Make in Pakistan” and we have a very strong commitment towards localization. 150 million locally produced parts are used by IMC every day with a massive Rs40 billion in annual purchases. For Corolla, we have achieved 64 percent localization.’
As IMC continues to serve its customers he said, ‘We have been fighting against the menace of premiums for a long time. Our recent breakthrough initiative of canceling multiple booking orders has helped counter premiums. Thousands of orders have been scrutinized for investors’ activity and numerous have been canceled. We have been regularly running customer education campaigns against premiums. We have gone the extra mile to fight this menace, now it’s the government’s responsibility to take initiatives such as wholesale retail mechanisms and increased transfer taxes to discourage premiums.’
He also commented on CPEC saying, “Optimistic macroeconomic indicators, coupled with breakthrough projects like CPEC can help Pakistan make it to the league of top 10 automobile manufacturers in the world through transparent and consistent policies. Given the incoming investment, Pakistan Auto Market is likely to cross 500,000 units mark before expected.”