With Pak Suzuki Motor Company’s (PSMC) announcement of price hikes, the other companies are expected to follow suit quite soon. However, PSMC’s recent price hike has made it certain that the increases are the result of hiked Federal Excise Duty (FED) and Sales Tax rates.
The impact of these new rates, which were imposed after the approval of the mini-budget, is likely to be reflected in the car prices across the board. Therefore, the following are the expected price hikes against locally assembled cars by Toyota Indus Motor Company (IMC):
|Cars||Current Price (Rs.)||Expected Price (Rs.)||Absolute Difference (Rs.)||% Difference|
|Yaris GLI MT 1.3||2,549,000||2,611,171||62,171||2.4%|
|Yaris ATIV MT 1.3||2,679,000||2,744,341||65,341||2.4%|
|Yaris GLI CVT 1.3||2,749,000||2,816,049||67,049||2.4%|
|Yaris ATIV CVT 1.3||2,849,000||2,918,488||69,488||2.4%|
|Yaris ATIV XMT 1.5||2,899,000||2,969,707||70,707||2.4%|
|Yaris ATIV XCVT 1.5||3,099,000||3,174,585||75,585||2.4%|
|Corolla X Manual 1.6||3,299,000||3,379,463||80,463||2.4%|
|Corolla Automoatic 1.6||3,449,000||3,533,122||84,122||2.4%|
|Corolla X CVT-I 1.8||3,779,000||3,871,171||92,171||2.4%|
|Corolla X Auto 1.6 – SE||3,779,000||3,871,171||92,171||2.4%|
|Corolla Grande XCVT-I 1.8 – Biege||4,079,000||4,178,488||99,488||2.4%|
|Corolla Grande XCVT-I 1.8 – Black||4,099,000||4,198,976||99,976||2.4%|
|Hilux REVO G MT||6,789,000||6,946,884||157,884||2.3%|
|Hilux REVO G AT||7,139,000||7,305,023||166,023||2.3%|
|Hilux REVO V AT||7,849,000||8,031,535||182,535||2.3%|
|Fortuner 2.7 G||8,179,000||8,568,476||389,476||4.8%|
|Fortuner 2.7 V||9,489,000||9,940,857||451,857||4.8%|
|Fortuner 2.8 Sigma 4||9,919,000||10,391,333||472,333||4.8%|
Toyota IMC announced its most recent price hike in November 2021, which — according to the company CEO Ali Asghar Jamali — was due to the massive depreciation of the Pakistani Rupee against the US Dollar, increased freight charges, and inflated raw material costs.
Upon the finance ministry’s proposal to increase taxes on locally assembled cars in December, Jamali critiqued the government’s policymaking while highlighting that the car industry requires a concrete and sustainable policy that allows for continued growth.
The revised tax rates have wreaked havoc across the auto industry, causing problems for car buyers and manufacturers. The mini-budget is proving to be a double-edged sword as it is curtail the import bill while minimizing impact on car production and sales volume.