Toyota IMC CEO Hints at an Impending Car Price Hike
Pakistani automakers appear to be on the verge of increasing car prices because of incessant freight costs, surging rates of raw materials, and devaluation of the local currency.
Chairman of the Pakistan Automotive Manufacturers Association (PAMA) and CEO of Toyota Indus Motor Company (IMC) Ali Asghar Jamali has been quite vocal about these issues of late, hinting again that the prices of vehicles are likely to increase soon.
A hefty surge in the cost of raw material including steel, copper, and aluminum is being witnessed across the world,” he said and added that the “rupee depreciation is putting immense pressure on the Original Equipment Manufacturers (OEMs).
Jamali highlighted that the prices of steel have surged by 215 percent since March 2020. The price of aluminum has also gone over $3000 per tonne, while that of copper increased to over $10,000 in October 2021.
He added that Toyota IMC is mulling over whether to implement the price increase in one go or two and told the media that it is “thinking of giving relief to buyers who have already booked their vehicles for November and December delivery”.
The CEO explained that the last time Toyota IMC upped its prices was in April 2020 when the exchange rate of the Pakistani Rupee against the US Dollar was around Rs. 161. There has been a massive fluctuation in the value of the dollar since then, which has resulted in added expenses for all the automakers in Pakistan.
During his discussion with the media, Jamali disclosed that the company is planning to expand its production capacity by 20 percent next year. He also apprised the media about its plans pertaining to the local assembly of Hybrid Electric Vehicles (HEVs) — a venture in which Toyota IMC has recently invested $100 million.
The company recently posted record-breaking monthly sales figures for the second time this month. Having sold over 7000 units this October, it shattered its own record of selling 6,775 vehicles in July 2021 and claims that the October sales are its highest of all time since 1993.
While the upcoming price hike is imminent, Toyota IMC is still likely to enjoy a high demand for its vehicles regardless.