Import curbs inflicted by the State Bank of Pakistan have shattered the local auto industry. Car makers are announcing consecutive production cuts and price hikes. Meanwhile, along with industry’s massive downfall, the prevailing economic bust in the country has pushed down the Toyota IMC production capacity to 40-50%.
The company holds SBP’s import hurdles responsible for ongoing production downturn during its recent Corporate Briefing Session (CBS). Toyota IMC also revealed that these import curbs will be stretched for the next few months.
IMC added that it has filled booking slots for next 3 months and 300-400 customers have dropped their booking and get the amount back with markup – again due to State bank’s import embargo. Similarly, restriction on car loans has reduced the auto financing from 35% to 10% in the last few months.
The company has stated that it can reduce the lead time to 4-5 weeks after the restrictions are eased or lifted. Moreover, it also has plans to launch their first hybrid car in Pakistan and invest $100 million in the Hybrid electric vehicle (HEV) sector.
Toyota – World’s Largest Automaker For 2022
When auto analysts are anticipating that electric and hybrid cars are the future of the auto industry, Toyota Motor Corporation, with its wide range of gasoline-powered car engines, is still the leading car maker among its competitors.
As per reports, Toyota’s revenue has increased by 10%, making it the World’s highest-valued car company for 2022 – for the third consecutive time. The milestone has nudged it to surpass its rivals, including Tesla, BMW, and Mercedes-Benz.
Toyota’s brand value clocks at $59.757 billion, simply beating Mercedes-Benz, Tesla, BMW, and Honda, reaching $56.103, $48, $46.331, and $22.837 billion, respectively.
Mind you, the pandemic-led restrictions and chip shortage shattered the supply chain, which in turn affected the leading automakers – increased the competition among car makers.
When they don’t use their full capacity ofcars production to breed car shortage thus increasing cars price, it is easy to blame the others, They aren’t the only on, almost all the cars brand assemble locally are doing this.