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KARACHI: Indus Motor Company (IMC) has increased prices of 1,300-1,600cc cars by Rs50,000-60,000 ahead of the new year. Other assemblers are likely to follow suit.
The new price of Toyota Corolla XLi, GLi and GLi automatic transmission is Rs1.81 million, Rs1.94m and Rs2.02m compared to Rs1.75m, Rs1.88m and Rs1.96m, respectively. The new price of 1.6 Altis has been jacked up to Rs2.19m from Rs2.14m.
The company’s CEO, Ali Asghar Jamali, attributed the price hike to seven to eight per cent rupee devaluation against the dollar which has pushed up prices of imported components.
He said that due to the devaluation of the rupee, the cost of locally produced components, which have imported raw material, has also gone up owing to losing strength of the rupee.
According to the Pakistan Bureau of Statistics, the import bill of completely-knocked down and semi-knocked down kits for locally assembled cars soared to $329m in July-November from $262m in the same period last year.
According to Pakistan Market Outlook 2018 prepared by Topline Securities, the auto sector is likely to benefit from the change in import duties and procedure of imported vehicles, which could reduce car imports by 20-25pc.
A reduction in imported, used vehicles would allow existing players to pass on the cost pressure of devaluation in 2017-18 before new auto players make an entry in 2019.
Sales would be supported by the introduction of new models in 2018-21.
Published in Dawn, December 24th, 2017
