IMC might increase the prices of its cars second time this year

Indus Motors Pakistan might once again increase the prices of its Toyota vehicles in the coming months. The chief executive officer of IMC Ali Asghar Jamali hinted the potential price hike while talking at company’s “Annual Industry Workshop and Meet the Pres” event held in a hotel in Muzaffarabad Azad Kashmir.

The CEO said,

There’s a six per cent devaluation in rupee value. It’s unsustainable to operate under the present prices

The CEO further mentioned how the devaluation of Pakistani rupee has caused the prices of raw material to rise. He indicated that the production costs have increased. The increase in the prices of fuel, steel, copper along with the regulatory duty on raw materials, all factors combined is making it difficult for the company to retain the current retail prices of its car.

One can argue that the carmaker is getting ready to increase prices of its vehicles once again. IMC only recently bumped the prices of its vehicles a couple of months or so ago.

IMC Corolla is ranked 23rd among 170 countries, has the highest sales in Asia Pacific region and is the 4th highest selling Corolla in the world.

IMC has invested to increase its production capacity and reduce the delivery time of vehicles, according to IMC CEO,

Indus Motor also has invested over Rs4 billion to de-bottleneck its production facility and increase its capacity by 20 per cent i.e. up to 75,000 units annually by the second quarter of 2018

The CEO further said,

We have been fighting against the menace of premiums for a long time. Our recent breakthrough initiative of cancelling multiple booking orders has helped counter premiums. Thousands of orders have been scrutinised for investors’ activity and numerous have been cancelled. We have been regularly running customer education campaigns against premiums. We have gone the extra mile to fight this menace, now it’s the government’s responsibility to take initiatives such as wholesale retail mechanisms and increased transfer taxes to discourage premiums

The event’s topic was the impact of CPEC and the potential of Pakistan’s auto industry. The event was held with the collaboration of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM).

Let’s us know what you think about what the IMC CEO has said in the comments section below.