Indus Motor Company (IMC), the assembler of Toyota vehicles in Pakistan, made a significant announcement on Tuesday, revealing a substantial price reduction of up to 8.3% or Rs1.31 million, effective from October 24. This decision aimed to pass on the benefits of the recent appreciation of the Pakistani rupee against the US dollar to their valued customers.
In a report published on Wednesday, it was stated that IMC, responsible for distributing Toyota’s popular models like Yaris, Corolla, Revo, and Fortuner, communicated the revised pricing to its network of dealers.
This move by IMC follows similar actions taken by other automakers in Pakistan, such as MG Motors and Lucky Motor Corporation, who also reduced the prices of their vehicles earlier in the month.
For the Yaris model, the basic 1.3MT LO version saw a price reduction of Rs100,000, which equates to a 2.2% decrease, with the new price now set at Rs4.399 million. Meanwhile, the top-tier variant, the 1.5 CVT Aero, received a price cut of Rs120,000, now available for Rs5.849 million.
Toyota Corolla’s various models experienced reductions ranging from Rs200,000 to Rs250,000, while Toyota’s Revo pickup truck became more affordable by Rs450,000 to Rs790,000.
The prices of Fortuner’s top variants, the Legender and GRS, dropped below the Rs20 million mark after a reduction of Rs1.13 million and Rs1.19 million, respectively.
The most significant price reduction was observed in the Fortuner G4x2 Petrol STD, which is now priced at Rs14.499 million following an 8.3% or Rs1.31 million decrease.
This price adjustment comes as the Pakistani rupee made significant gains, strengthening over 10% against the US dollar since hitting a record low of 307.1 last month. The currency’s rebound can be attributed to the caretaker government’s crackdown on smuggling and hoarding activities, which helped stabilize the rupee against the dollar.
The Pakistani auto sector has been grappling with challenges since the previous year when the government imposed import restrictions to control the outflow of dollars. These measures led to a sharp decline in demand and production, prompting some automakers to reduce output and temporarily shut down production facilities.
The rupee’s appreciation has provided some relief to the auto sector, which heavily relies on imports for parts and raw materials and has been dealing with high costs and sluggish demand.
Data from the Pakistan Automotive Manufacturers Association (PAMA) showed a significant drop in auto sales during the first quarter of the fiscal year 2023/24. High prices, expensive financing, and weak consumer demand weighed on the sector, resulting in a 44% decrease in car sales to 16,021 units compared to 28,571 units the previous year.
Additionally, sales of jeeps, SUVs, and pickups fell by 23% to 4,962 units from 6,431 units. However, tractors bucked the trend with a 64% increase in sales, reaching 12,090 units, reflecting a revival in the agriculture sector.
Despite these challenges, there was a slight recovery in August and September, as some issues related to the import of completely knocked down (CKD) kits eased, and automakers managed to ramp up their production.
