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The cost of Toyota Vehicles is expected to rise

LAHORE: Indus Motor, the manufacturer of Toyota vehicles, plans to hike prices by five to six percent in the next two weeks. Ali Asghar Jamali, the chief executive officer (CEO) of Indus Motor, stated this on Wednesday.

“We raised our pricing the last time in April of last year, when the exchange rate was 160/161 to the dollar,” he stated.

“Since then, the falling dollar, rising foreign raw material prices, and freight costs have put a lot of pressure on Original Equipment Manufacturers (OEMs).”

Also read: MAP Corporate Excellence Award 2021 is given to Indus Motor

Since March 2020, steel prices have gone up by a staggering 215pc. The per tonne prices of aluminum and copper reached over $,3000 and $10,000, respectively, in October 2021.

“We are discussing if we want to raise the prices in one go or in two phases. Also, we are thinking of giving relief to buyers who have already booked their vehicles for November and December delivery,” Mr Jamali said.

The significant tax reduction on cars announced by the government in its budget for the present fiscal year to encourage sales has kept the OEMs from raising their prices despite the burden on their financial because of the above factors.

The chief exexutive said his company is striving to increase production capacity by further 20pc by April next year.

“We recently had a ground breaking ceremony at our plant to expand sports utility vehicle and commercial vehicle production.

Also read: In the face of growing expenses, automakers are considering raising prices

This will increase IMV production over 22pc,” he added. Toyota has recently invested over $100 million for the local production of Hybrid Electric Vehicles (HEV) in Pakistan.

“The investment is meant for the localisation of components, plant expansion and production preparation for the first HEV,” he said.

The government has already given incentives to low carbon mobility solutions.

“We believe strong hybrids are a practical and sustainable solution for achieving mass electrification in Pakistan.Therefore, we are thrilled to bring the most efficient fourth generation HEV to our customers soon.”

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