This will be the second time the automaker will increase its car prices after January 2018 and the decision is being taken due to multiple factors.
Indus Motors Company (IMC) has implied at an increase in the prices of its cars by up to Rs.100,000. The increase in price will not only hit new customers, but also those who have already booked their cars with the company a few months earlier.
Indus Motors Company’s Chief Executive Officer “Ali Asghar Jamali” has announced this in a media workshop held in Muzaffarabad, Azad Kashmir.
Jamali, along with the former Chairman of Pakistan Association of Automotive Parts and Accessories manufacturers “Aamir Allawala”, briefed journalists regarding the current state of the auto industry in Pakistan.
According to Jamali, there are multiple factors behind this, including the current trends in the international market, the high costs of materials used in the manufacturing of cars; especially steel, copper, and plastic.
Another factor is the reducement of Pakistani rupee against major currencies. The Rupee has been devalued against the US Dollar, Japanese Yen, and Thailand Baht.
Given the currency reduction and price increase in raw materials, car prices will go as high as 5%.
He further claimed that Rs.102 billion is transferred from Pakistan via Hawala and Hundi every year. Due to imports of used cars, the local vendor industry is facing issues with growth. On the import of 79,000 cars, it is estimated that about 184,300 local jobs are lost.
All of these things contribute towards the value of a manufactured car in Pakistan. And according to Chief Executive Officer of Indus Motor Company, the price of Toyota Corolla can shoot up by Rs, 100,000.