Toyota Pakistan Earns a Hefty Profit Even with Poor Sales
Even with no well-thought financial strategies of the incumbent government, car companies are making hefty profits. After Pakistan Suzuki Motor Company (PSMC), another car maker Toyota Pakistan also posted a profit with dwindling sales.
Toyota Indus Motor (IMC) reported a profit of Rs. 3.21 billion for the first quarter of this year, that concluded on March 31. As per the reports, the company faced a slump of 37.1% compared to a profit of Rs. 5.11 billion earned in the correspondent time of last financial 2033-23.
The automaker posted a jump of 142% in quarter-over-quarter (QoQ) profit. Reports have revealed that IMC has observed a profit after two months of consecutive loss in FS’22.
In contrast, IMC’s sales declined by 29% making a profit of Rs. 48.19 against 68.2 billion. And the reason behind the downtrend in sales is a steep rise in inflation combined with imports curbs which have nudged the customer for not paying hefty amounts to buy over-priced new cars.
Highlighting month-on-month sales, car makers witnessed an increase of 54% last month. Mind you, the local auto industry has reported this rise after a continuous down of several months.
Car Sales Improved by 54 % Last Month
Pakistan Automotive Manufacturers Association (PAMA) issued a car sales report for March’23. As per the PAMA report, the car sales clocked-in at 9,351 units against 6,072 in February – increased by 54% MoM. Coming to year-on-year sales, observed a decreased of 66%, selling 27,202 vehicles in the corresponding period of last year.
Meanwhile, Honda Atlas car sales posted a new low – dropped by 49%, selling 835 units in March compared to 1,636 units in February. (MoM decline: 49%)
Coming to Pak Suzuki Motors Company’s sales marked a surprising increase of 475%, surpassing fellow Toyota and Honda. The company sold 5,628 cars last month, contra 978 cars in February. (MoM growth: 475%)
Hyundai Nishat sales reported of down 34%, selling 836 units last month compared to 1,271 units in Feb’23. (MoM growth: 81%)
What do you think about the sales and profit scenario of the car companies? Drop your thoughts in the comments.