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Toyota Pakistan profit doubles in first half of FY2021

Commands a quarter of the Pakistan auto market share

SAMAA | - Posted: Feb 26, 2021 | Last Updated: 8 months ago
SAMAA |
Posted: Feb 26, 2021 | Last Updated: 8 months ago

Photo: Samaa Money FILE

The Indus Motor Company, commonly known as Toyota Pakistan, saw its profit increase by 108% in the first half of the fiscal year 2021 (July to December 2020). It stood at Rs4.8 billion as compared to Rs2.3 billion the previous year.

The increase in profit came due to an increase in sales volume. The company sold an additional 82% units during the period as compared to the same period last year. It sold 26,362 cars against 14,453 vehicles sold during the same period last year.

The IMC share in the market stood at approximately 24.7% for the half year that ended on December 31, 2020. Toyota cars are the second most selling cars in the country after Suzuki.   

The company’s net sales increased to Rs79.65 billion as compared to Rs42.78 billion for the same period last year. It attributes the higher profit to its new sedan, Yaris, which was launched early last year.

Related: The top five selling cars in Pakistan

“Moreover, Fortuner TRD variant was launched in October 2020 which too was well received by customers,” the company said.

Pakistan’s auto development policy that was introduced in 2016 will end in June 2021. It enabled green field investments in the auto industry to reach an annual production capacity of 500,000 units, with multiple brands and product offerings.

Analysts attribute higher car sales to increased consumer purchasing power and a reduction in interest rates that led to an increase in auto financing.

The Earnings Per Share (EPS) of the IMC stood at Rs61.08 as compared to Rs29.32 reported during the same period last year. Its board of directors has declared the second interim cash dividend of Rs25 per share, compared to last year’s Rs6 per share.

Related: Car scrappage policy should have preceded EV policy: Toyota Pakistan

“Overall, the automobile industry is clearly bouncing back,” IMC CEO Ali Asghar Jamali said. “The economic upturn following the gloom and despair hovering over the auto industry during the COVID-19 lockdown owes itself to the government’s timely decision to ease the lockdown and introduction of favorable policies.

“Reduction in interest rates has been another factor that led to an increase in auto financing, bolstering the consumer confidence,” he added.

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