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- MG Motors and Lucky Motors have already slashed prices.
- Move comes after rupee’s appreciation against US dollar.
- Auto sector has been struggling since last year.
KARACHI: Indus Motor Company (IMC), the assembler of Toyota vehicles in Pakistan, announced on Tuesday that it has slashed prices by up to 8.3%, or Rs1.31 million, from October 24 onwards to pass on the benefit of the rupee’s recent appreciation against the dollar to customers, reported The News.
In its report published on Wednesday, the publication stated that the company, which sells Toyota’s Yaris, Corolla, Revo, and Fortuner, informed dealers in a notification about the revised prices.
The move follows that of MG Motors and Lucky Motor Corporation, which also announced a reduction in prices of their vehicles earlier this month.
The basic Yaris model, the 1.3MT LO, has gone down by Rs100,000, or 2.2%. The new price is Rs4.399 million. Meanwhile, its top variant, the 1.5 CVT Aero, will now be sold for Rs5.849 million after cutting down the price by Rs120,000.
Toyota Corolla’s variant prices have been reduced by Rs200,000 to Rs250,000. Toyota’s pick-up truck, the Revo, has become cheaper by Rs450,000 to Rs790,000.
Meanwhile, the prices of Fortuner’s top variants, the Legender and GRS, dropped below Rs20 million after a reduction of Rs1.13 million and Rs1.19 million, respectively.
The highest price cut among all the models was seen for the Fortuner G4x2 Petrol STD which will now sell for Rs14.499 million after a reduction of Rs1.31 million, or 8.3%.
The rupee has gained over 10 against the greenback since it hit the record low of 307.1 last month. Following the caretaker government’s crackdown on smugglers and hoarders to check illegal outflows the rupee recovered and stabilised against the dollar.
The auto sector has been struggling since last year, when the government imposed restrictions on imports to curb dollar outflows. The measures led to a sharp drop in demand and production, forcing some automakers to cut output and temporarily shut down plants.
The currency appreciation has eased the pressure on the auto sector, which heavily relies on imports of parts and raw materials and has been struggling with high costs and low demand.
The Pakistan Automotive Manufacturers Association (PAMA) data showed that auto sales dropped sharply in the first quarter of the fiscal year 2023/24, as high prices, expensive financing, and weak consumer demand weighed on the sector.
Car sales plunged 44% to 16,021 units in the July-September period from 28,571 units a year earlier, while sales of jeeps, SUVs, and pickups fell 23% to 4,962 units from 6,431 units.
The decline was across all segments, except for tractors, which saw a 64% surge in sales to 12,090 units from 7,368 units, reflecting a revival in the agriculture sector.
The dismal performance came despite a month-on-month recovery in August and September, as some of the issues related to the import of completely knocked down (CKD) kits eased and automakers ramped up production.
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