In a breaking news, Toyota Pakistan has suspended the bookings of all of its cars. According to a statement, the company has asked its dealers to close order intake for all Toyota models. “Due to current uncertain and volatile market conditions, the order intake for all Toyota models has been closed till further notice,” the company said.
Nothing Unexpected
The announcement by Toyota Pakistan was not unexpected, especially with regard to rapid devaluation of the Pakistani rupee against the USD. In the last four days, the dollar has climbed from Rs. 184 to Rs. 190, which is huge for a currency. Also, there seems to be no respite for the rupee in the coming days because of political instability in the country. The drop in the dollar started on Sunday after Prime Minister Imran Khan dissolved assemblies as the opposition presented a no-confidence motion against him.
As all car companies import major parts, hence, they have a direct link to the forex rate. Hence, this slipping of the rupee put pressure on the companies.
As per the experts, the dollar has dropped by 15.36% since the start of the current fiscal year in July 2021. The situation remains to stay volatile until a new government setup is implemented.
Kia Suspended Bookings
Toyota Pakistan is not the first company to take such a step, as on April 4, Kia Lucky Motors suspended the bookings of all variants of Kia Picanto, Kia Sportage, and locally assembled Kia Stonic. As per the notification, the company suspended bookings of these variants till further notice. “However, production, dispatches, and invoicing will continue as planned,” the company said.
More importantly, if the situation remains the same, other companies will follow, leading to more chaos in the local auto industry and market. Hence, we hope the political situation will stabilize soon, and this uncertainty will end.
