Indus motor company increased the prices of Toyota Cars by 18-21%. The prices are revised from Rs 287,000 to up to Rs 1,257,000 depending on the model & variant. IMC has given a massive shock to the buyers with the new retail prices.
Indus Motors Company (IMC) increased the prices of Toyota cars of several models. The company built-up unit (CBU) prices are increased by Rs1.16-2.28 million. As per the reports, this jump is due to the freight cost and international commodity prices. Topline Securities analyst Sunny Kumar said that the company hiked prices of cars in the range of 18-21%.
This increase in prices has given a massive shock to the buyers of the Toyota cars. The buyers who booked cars from 23rd March have to bear this. The increment in prices is not in thousands it is in Millions. The company increased the prices of Corolla Cross 1.8L from Rs9.249 million to Rs11.179 million, a jump of Rs1.93 million.
However, other industry players such as MG also increased car prices. On the other hand, Insight Securities analyst Ali Asif said that since the end of the fiscal year 2020-21, KIA has raised the prices of its vehicles three times, while other automakers have increased rates at least twice.
Factors and Dates of Increment in Prices of Automobiles
The first increase happened in November 2021. It happened due to the spike in rates of cold-rolled coils, however, the devaluation of the Pakistani rupee and a rise in freight cost was also the major reason. The second increase happened in January 2022 due to the back imposition of federal excise duty (FED) and sales tax.
Major factors contributing to the increase in prices of automobiles in Pakistan include an increase in shipping time and availability of essential raw materials, said automobile expert Mashood Ali Khan.
“Forecasting is becoming more and more difficult for any business that is operating with international supply chains,” said Khan. “New bottlenecks are appearing day by day which increases the cost of operation.”
On the other hand, Arif Habib Limited Head of Research Tahir Abbas said that “Indus Motor Company increased the prices of its CBUs including Corolla Cross, Prius, and Rush amid a surge in import duties in the mini-budget tagged with the higher global freight charges”.
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