Toyota Indus Motor Company’s (IMC) decision to reduce car prices has sparked a conversation on social media regarding the extravagant prices of other cars. A majority of buyers are now demanding price cuts from other brands as well.
On July 28, 2022, the US Dollar (USD) reached an all-time high mark of Rs. 240, which prompted all automakers to announce price hikes. With the USD rate now standing at Rs. 214, car buyers have begun calling for price revisions.
Pakistan Businesses Forum (PBF) President Mian Usman Zulfiqar told The Express Tribune that the USD rate has declined to Rs. 213 from Rs. 248 in the inter-bank market and to Rs. 210 in the open market. This decline should allow for a car price reduction, he added.
Echoing the same notion, Auto Industry Analyst Arslan Hanif stated:
Toyota takes the lead by announcing a reduction in car prices post-rupee appreciation and now all OEMs have to follow suit. This was the necessary step as consumers were continuously demanding automobile companies to reduce car prices.
These factors have begun taking a toll on car sales in Pakistan. In July, car sales fell by almost 60 percent due to production cuts, as well as soaring prices.
The disparity between the inflation rate and the rate of increase in income has handicapped the public from buying all commodities including cars.
The masses are urging the government to ensure price revisions from all automakers and make cars attainable for the masses.
When dollar increased from 200 to 240, prices were increase by 10lac, and when dollar reduced from 230 to 210, the decrease in prices is just 3 lac. Who are they fooling?