Toyota cuts prices amid rupee’s appreciation against dollar. Assembler of Toyota vehicles in Pakistan, Indus Motor Company (IMC), announced on Tuesday that prices will be reduced by up to 8.3%, or Rs1.31 million, starting on October 24 in order to pass on the benefits of the rupee’s recent strengthening against the dollar to customers.
The company, which sells Toyota’s Yaris, Corolla, Revo, and Fortuner, reportedly sent a notification to dealers on Wednesday informing them of the revised prices.
The action comes after MG Motors and Lucky Motor Corporation, which earlier this month also announced a decrease in the prices of their vehicles.
The 1.3MT LO, the base model of the Yaris, has decreased by Rs100,000, or 2.2%. Rs4.399 million is the new price. Its most expensive model, the 1.5 CVT Aero, will now be offered for Rs5.849 million after the price was reduced by Rs120,000.
Price reductions of Rs200,000 to Rs250,000 have been made to Toyota Corolla variants. The price of Toyota’s Revo pickup truck has decreased by Rs450,000 to Rs790,000.
Also read: Toyota Yaris latest price in Pakistan 2023
As a result of price cuts of Rs1.13 million and Rs1.19 million, respectively, the top-tier Fortuner variants, the Legender and GRS, now cost less than Rs20 million.
The Fortuner G4x2 Petrol STD saw the largest price reduction of all the models, with a reduction of Rs1.31 million, or 8.3%, bringing the price down to Rs14.499 million.
Since reaching a record low of 307.1 last month, the rupee has appreciated by more than 10 against the dollar.
The rupee recovered and stabilized against the dollar after the caretaker government cracked down on smugglers and hoarders to stop illegal outflows.
Since the government placed import restrictions to stop the flow of dollars abroad last year, the auto industry has been experiencing difficulties.
The actions caused a significant decline in demand and production, which forced some automakers to reduce output and temporarily close plants.
The pressure on the auto industry, which is heavily dependent on imported parts and raw materials and has been struggling with high costs and low demand, has lessened as a result of the currency’s appreciation.
As Toyota cuts prices amid rupee’s appreciation against dollar, according to data from the Pakistan Automotive Manufacturers Association (PAMA), the auto industry was negatively impacted by high prices, expensive financing, and weak consumer demand during the first quarter of the fiscal year 2023–24.
Sales of cars decreased by 44% to 16,021 units from 28,571 units in the same period last year, while sales of jeeps, SUVs, and pickup trucks decreased by 23% to 4,962 units from 6,431 units.
Except for tractors, which saw a 64% increase in sales to 12,090 units from 7,368 units, the decline affected all segments. This increase reflected a recovery in the agricultural sector.
The poor results were achieved despite a month-over-month improvement in August and September when some of the problems associated with the import of completely knocked-down (CKD) kits were resolved and automakers increased production.
