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Toyota Decreases Car Prices: Who Is Indus Motors Trying to Fool?

Toyota Decreases Car Prices: Who Is Indus Motors Trying to Fool?

Credit must be given where it’s due. Indus Motor Company Limited (IMC) is perhaps the only local auto manufacturer so far which has decreased the prices of its entire CKD fleet. A commendable act, which must be appreciated. The new prices will take effect immediately.

Here are the new prices:

VariantOld prices (Rs)New prices (Rs)Price Difference (Rs)
Yaris GLI M/T 1.33,799,0003,539,000260,000
Yaris GLI CVT 1.34,039,0003,769,000270,000
Yaris ATIV M/T 1.33,999,0003,729,000270,000
Yaris ATIV CVT 1.3,4,209,0003,929,000280,000
Yaris ATIV X M/T 1.54,309,0004,009,000300,000
Yaris ATIV X CVT 1.54,569,0004,259,000310,000
VariantOld prices (Rs)New prices (Rs)Price Difference (Rs)
Corolla Altis X M/T 1.64,899,0004,569,000330,000
Corolla Altis X A/T 1.65,139,0004,789,000350,000
Corolla Altis X A/T 1.6 Special Edition5,639,0005,279,000360,000
Corolla Altis X MT 1.85,679,0005,269,000410,000
Corolla Altis X CVT-i 1.8 (Beige Interior)6,149,0005,709,000440,000
Corolla Altis X CVT-i 1.8 (Black Interior)6,189,0005,749,000440,000
VariantOld prices (Rs)New prices (Rs)Price Difference (Rs)
Fortuner 2.7 G12,489,00011,579,000910,000
Fortuner 2.7 V14,279,00013,259,0001,020,000
Fortuner 2.8 Sigma 415,069,00013,969,0001,100,000
Fortuner Legender15,839,00014,699,0001,140,000
VariantOld prices (Rs)New prices (Rs)Price Difference (Rs)
Hilux E9,039,0008,449,000590,000
Hilux Revo G Manual 2.89,819,0009,169,000650,000
Hilux Revo G Automatic 2.810,299,0009,609,000690,000
Hilux Revo V Automatic 11,349,00010,599,000750,000
Hilux Revo Roco11,999,00011,179,000820,000 

However, there is more to it than what meets the eye.

Why Has Toyota Decreased Prices Now?

The reason being given by Toyota Pakistan for this unexpected and pleasant news is that as the US Dollar has weakened against the Pak Rupee, the company has been able to reduce prices. Let’s dig a little deeper into the merits of this claim.  

The Ups and Downs of the U$D

The Pak Rupee got a real hammering from the US Dollar in July 2022. It traded at around Rs.241 in the interbank. In the open market, it was being sold for around Rs.250, if at all. However, in the last two weeks, the Rupee has made a miraculous recovery, and now the USD is trading (interbank) at around Rs.212. This is an appreciation of about 12%. 

Has Toyota Pakistan Decreased the Prices of Its Cars by 12%?

To see whether Toyota Pakistan has actually passed on the “favorable forex impact to its customers” in its entirety (as claimed by the company in its circular sent to its dealers), let’s examine the old and new prices of Toyota Fortuner Legender.

To jog your memory, Toyota increased the prices of its vehicles including the Fortuner in the last week of July 2022. In the case of the Fortuner Legender, the price was increased by Rs.3,160,000. 

You can see that price hike here: Another Price Hike! Toyota Car Prices Increased

This mid-size SUV has now been discounted by Rs.1,140,000. This is a price reduction of 7%, not 12%.

The same can be said for many other models. 

ModelOld PriceNew PriceDifference% Change
Fortuner Legender15,839,00014,699,0001,140,000-7
Corolla 1.6 MT4,899,0004,569,000330,000-6
Corolla 1.8 CVT SR (BLACK)6,189,0005,749,000440,000-7
Yaris 1.3 MT3,799,0003,539,000260,000-6
Yaris 1.5 CVT4,569,0004,259,000310,000-6

So, the question you need to ask yourself is has Toyota IMC really passed on “favorable forex impact to its customers”?

Suspended Bookings

Toyota price decrease means nothing if people cannot book these “cheap” cars. Toyota suspended bookings of these models in May 2022 and it remains suspended to this day. 

Ever since they suspended bookings, profiteers have hit a goldmine and this is true for all makes and models in Pakistan. However, what this price decrease might do is bring the ON money down on these Toyota models. 

To know how profiteers make a killing in the auto sector, read: Pakistan Auto Industry Is In Crisis But Investors Are Still Making a Killing. How?

The Real Reasons Behind Toyota Pakistan Car Price Decrease

So, now to the million dollar question. Why is Toyota IMC feeling so generous? 

While we cannot outrightly dismiss the effects of fluctuating forex on the cost of auto manufacturing in Pakistan, in our opinion, the reason why price decrease has happened now is twofold:

  1. Declining Toyota car sales
  2. Declining profits

Do you know the sales numbers of Toyota Corolla and Yaris (all variants)? Here they are:

YOY:

July 2021July 2022Difference
50201734-65%

MOM:

Jun 2022July 2022Difference
44531734-61%

What’s more, Fortuner and Hilux have also recorded sales in the negative both for YOY and MOM (-62 and -65 respectively). 

To read more on the latest Toyota sales figures, click on PAMA Car Sales Report (July 2022)

In short, Toyota IMC is losing out on sales. This is obviously eating into its profits as well. So, what does the company do? It reduces the price of its cars. 

To conclude, Toyota IMC’s latest price decrease must be appreciated. Though not enough, it is hoped that it will further decrease the prices of its cars and fully pass on “favorable forex impact to its customers”. Hopefully, others will take heed and decrease their prices as well.

To keep yourself updated with the latest Toyota prices, don’t forget to check our Toyota New Car page.

If you are looking to buy used Toyota cars, begin your search at OLX Pakistan.

What do you make of the latest Toyota price decrease? Let us know. We are interested in hearing from you. 

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