IMC (Indus Motors Company) the local distributor of Toyota in Pakistan, has hinted a possible increase in the prices of its product line-up especially Toyota Corolla 2016, in the near future. It should be mentioned that IMC has already increased the tariff of its products earlier in May 2016.
Indus Motor Company held its analyst briefing recently, where the company’s briefing for security analysis (June 30, 2016) hinted at the possible increase in the coming months to cover the Pakistani Rupee depreciation in relation to US Dollar and Japanese Yen.
Moreover, Pak-Suzuki increased the prices of their products by 3% from August 2016, which saw an increase of PKR 20,000 to 30,000 in the price tags of all vehicles offered by the company. And now, we might expect to hear the second price increase by IMC (The 2nd largest auto-manufacturer in Pakistan) in the same year. Here I would like to mention that the first price hike by IMC, saw an increased price tag of PKR 10,000 to 65,000 in Toyota Corolla cars in Pakistan.
Furthermore, EDB (Engineering Development Board) has asked both IMC and Pak-Suzuki to justify the reasons behind these latest price hikes. But so far, no response has been made from both auto-manufacturers.
The fact still remains that the company yielded a solid profit of PKR 9.1 billion after taxes as compared to the previous Fiscal Year’s 3.9 billion PKR. This growth is mainly attributed to an increasing demand for the company’s Toyota Corolla models in the local market. It should also be noted that IMC is all geared up and prepared to introduce the new Toyota Hilux Revo and the 2nd Generation of Toyota Fortuner in the coming months, which will help to elevate the status of IMC in the eyes of Pakistanis and will help the company to retain its good public relations with the investors and customers. But the question still remains: How will this probable price hike effect the company’s sales and overall customer relations?
Let us know about your remarks on this expected price hike.