Toyota has suspended bookings of all cars in Pakistan. The news is shocking but not surprising. KIA Lucky Motors recently suspended bookings of all of its locally produced cars. Now the same is followed by Toyota, further narrowing the consumer options.
Read more: KIA Suspended Bookings of its CKD lineup
According to the company, the bookings are suspended until further notice. The company is blaming uncertain and volatile market conditions for it to stop taking bookings of its cars. There may be some truth in what the company says. The Rupee has further devalued against the US Dollar in recent days. The steel prices have gone up considerably along with the freight charges required to import the steel.
Why has Toyota Really Stopped Taking New Bookings?
No automanufaturer in their right mind would stop taking new bookings. So, why has Toyota taken this drastic step?
You would remember that we recently ran a blog on the Karachi Consumer Court verdict in which MG was penalized for late delivering one of its vehicles.
Read more here: MG Motors recently got fined Rs.500,000
In our opinion, while it is true that the cost of auto manufacturing has gone up, the real reason behind this latest news from Toyota is that they don’t want to bite off more than they can chew and get penalized by a court.
What Next to Expect?
In recent years, it has become a practice for car companies and dealers to take more orders than they can deliver in time. This results in delayed deliveries of cars.
Do you think Toyota has done this due to the MG fine? Do you think other local auto manufacturers are planning the same? Let us know in the comments below.
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I think this is a good initiative taken by the company keeping in mind its reputation and long term relationships with its consumers.This way, they will be delivering the vehicles on time without any pressure and they can also wait for further production, until the next price increase.
Timely delivery is must except force majeure. Rupee devaluation coupled with economic and political uncertainties have been the major contributors of this situation. Unfortunately, govt. in power is totally powerless to make decisions for economic stability due to lack of their will and expertise.