Second price increase comes as dollar falls to four-month low
The Indus Motor Company (IMC), which assembles and sells Toyota cars in Pakistan, has increased its Yaris car prices by Rs40,000 and the top-of-the-chain model will now be selling at Rs3 million.
This is the second time the IMC has increased Yaris prices since its launch in March earlier this year. The first time was in April when the company increased the price by Rs150,000 of its top variant. The top-of-the-chain Yaris 1.5 ATIV X CVT is now priced at Rs2.999 million.
The basic Yaris (GLI MT 1.3) will now be selling at Rs2.51 million after a price hike of Rs160,000 since its launch. It was launched at Rs2.35 million.
“The Yaris was at an introductory price so it was as per plan,” IMC CEO Ali Asghar Jamali told SAMAA Money.
BMA Capital Head of Research Faizan Ahmed said that the company has seen high demand for the Yaris. Moreover, there’s a between Rs200,000 and Rs250,000 ‘own’ price on the Yaris.
Auto companies take months, sometimes up to six months, to deliver cars to buyers. Some investors buy cars from companies and have brand new cars present with them. Buyers have to pay ‘own money’, an amount above the car’s company price, to get the car delivery immediately.
Another senior research analyst at JS Global, Ahmed Lakhani says the IMC has increased Yaris price without any apparent reason because there’s demand but low competition.
“The landscape of the auto industry will be changing in the near future. I am expecting Kia’s Cerato will affect the sedan segment by next year. IMC will not be able to increase its car price at will when there will be competition,” he said.
Auto assemblers in the country generally attribute price hikes of cars to the rupee depreciation against the dollar. However, the dollar is at a four-month low of Rs163.9 right now.
Whenever the dollar becomes more expensive, carmakers increase prices because they import about 40% to 60% of their parts, which are paid for in dollars.