Toyota Indus Motor Company (IMC) had previously announced non-production days (NPDs) to cope with slow CKD imports. The latest reports suggest that IMC is offering a 100% refund with markup to customers who had booked cars in the recent past.
Ali Asghar Jamali, CEO of Toyota IMC, stated in his recent address, that the dwindling economy and production cuts are causing vehicle delivery delays. The overall situation is damaging the industry badly.
Jamali highlighted:
We are forced to currently operate at 40-45 per cent of our capacity. Unless these restrictions are eased, complete plant closures and total non-production will be inevitable. The continued weakeÂnÂÂing of the rupee will push the cost of production higher, in turn restÂricting manufacturers’ bottom line in the forthcoming quarters because of reduced volumes, demÂand and supply issues, and low margins.
Price Hikes Still Raging
The price hike wave is still alive and kicking as Honda Atlas Cars Limited (HACL) increased the prices of its car for the second time within 15 days. The company has cited mounting inflation and local currency depreciation as the reasons for the hike.
According to market reports, the relentless local currency value decline is causing other carmakers to increase prices as well. The car industry will likely remain a horror show for as long as the economy remains volatile.
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