Indus Motors Company (IMC) has hinted at an increase in the prices of its cars by up to Rs.100,000. It is said that the decision is being taken due to multiple factors. This will be the second time the automaker will increase its car prices after January 2018.
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.
This announcement was made by Indus Motors Company’s Chief Executive Officer Ali Asghar Jamali during a media workshop held at a local hotel 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, future growth and challenges in Pakistan.
Regarding the increase in car prices, Jamali stated that there are multiple factors behind this, including the current trends in the international market, as well as the high costs of materials used in the manufacturing of cars; especially steel, copper, and plastic.
He also said that the Pakistani rupee is also depreciating against major currencies. The Rupee has been devalued against the US Dollar, Japanese Yen, and Thailand Baht.
About 5% Increase in Prices
Given the currency devaluation and price increase in raw materials, car prices will go as high as 5%.
“All of these things contribute towards the value of a manufactured car in Pakistan. I assume that Toyota Corolla’s price could shoot up by Rs, 100,000,” Jamali disclosed.
Aamir Allawala said that due to imports of used and refurbished cars, the local vendor industry is facing issues with growth.
“The auto industry, on average, creates one job for every Rs 150,000 invested in the manufacture and assembly of cars. On the import of 79,000 cars, it is estimated that about 184,300 local jobs are lost. About Rs.102 billion are transferred from Pakistan via Hawala and Hundi every year,” he claimed.