Tag: Toyota

  • Toyota Yaris prices reduced by up to Rs133,000

    Toyota Yaris prices reduced by up to Rs133,000

    Indus Motor Company, the manufacturer of Toyota vehicles in Pakistan, has announced a significant price adjustment for its Yaris sedan range.

    This adjustment, effective from Thursday, reflects a reduction in prices ranging from Rs73,000 to Rs133,000.

    The revised pricing structure for the Yaris lineup is as follows: the 1.3 MT LO, 1.3 CVT LO, and 1.3 MT Hi variants will now be priced at Rs4.326 million, Rs4.616 million, and Rs4.586 million, respectively, representing a reduction of Rs73,000 for each model.

    Additionally, the price of the Yaris CVT Hi has been lowered by Rs133,000 and is now priced at Rs4.766 million.

    According to Business Recorder, this decision comes in response to the recent imposition of a 25 per cent sales tax on vehicles priced above Rs4 million.

    By implementing these price cuts, Indus Motor Company aims to ensure that the Yaris remains within the 18 per cent sales tax bracket.

    Initially, the government’s decision to raise the sales tax was targeted at vehicles with engine sizes of 1,400 cc and above, as well as those priced above Rs4 million.

    However, it later extended to include SUVs below the 1,400cc threshold, prompting manufacturers to advocate for a Rs4 million price cap.

    As a consequence of this tax adjustment, certain models from Toyota, Honda, and Suzuki are now subject to the increased sales tax regime.

  • Toyota manufacturer in Pakistan halts car production amid parts shortage

    Toyota manufacturer in Pakistan halts car production amid parts shortage

    Indus Motor Company (IMC), the manufacturer of Toyota vehicles in Pakistan, has declared a temporary shutdown of its production plant for a duration of six days.

    The decision stems from the company’s concern over low inventory levels and a shortage of essential components, as disclosed in a formal notice submitted to the Pakistan Stock Exchange (PSX).

    The notice specified, “Based on the current low level of inventory of manufactured vehicles and the shortage of parts and components for vehicle manufacturing, due to supply chain challenges, the company has decided to close its production plant from March 6th, 2024, to March 11th, 2024 (both days inclusive).”

    Pakistan’s automotive sector is grappling with various challenges, including the nation’s sluggish economic growth, surging inflation rates, and elevated borrowing costs, all of which are contributing to a decline in vehicle sales.

    To address these challenges, Indus Motor Company recently announced its board’s approval of an investment of approximately Rs3 billion.

    This investment aims to enhance the localization of production, a crucial step in the company’s broader strategy to consistently increase the localization of parts and components in locally manufactured vehicles. 

    This temporary shutdown underscores the broader challenges facing the automotive industry in Pakistan and reflects IMC’s proactive approach to managing its production in response to current market conditions.

  • Toyota IMC unveils locally-made Toyota Corolla Cross Hybrid in Pakistan

    Toyota IMC unveils locally-made Toyota Corolla Cross Hybrid in Pakistan

    Indus Motor Company (IMC) celebrated the launch of the 4th generation Toyota Corolla Cross Hybrid Electric Vehicle (HEV) at its manufacturing facility in Karachi.

    This marks a significant achievement for IMC, emphasising the ‘Made in Pakistan’ initiative and showcasing the strong bond between Japan and Pakistan. Notable figures present at the ceremony included Federal Secretary Asad Rehman Gilani, Toyota’s top leadership and the Japanese Ambassador to Pakistan, Mitsuhiro Wada. 

    Yoshiyuki Takai, expressing optimism about the Corolla Cross HEV’s reception in Pakistan, highlighted the environmental benefits of increased hybrid vehicle adoption.

    Gilani, on behalf of the government, congratulated IMC and reiterated the commitment to support hybrid and electric technologies, aligning with the Auto Policy 2021–26. IMC’s CEO, Ali Asghar Jamali, emphasised the company’s dedication to sustainability, revealing an investment exceeding $100 million in manufacturing the first locally produced HEV.

    The Corolla Cross HEV boasts a smooth and efficient 1800-cc engine with hybrid and gasoline options. Jamali also outlined IMC’s contribution to the local automobile sector, encompassing a comprehensive value chain, part manufacturers, authorised dealerships, and a substantial workforce of over 450,000 people.

  • Toyota car prices reduced by up to Rs1.3 million in Pakistan

    Toyota car prices reduced by up to Rs1.3 million in Pakistan

    Indus Motor Company, the leading assembler of Toyota-brand vehicles in Pakistan, has made a significant move to benefit its customers. 

    In a recent announcement sent to its dealers on Tuesday, the company revealed a substantial reduction in car prices, effective October 24. This decision was prompted by the recent strengthening of the Pakistani rupee against the US dollar.

    Following this development, the basic Yaris model 1.3MT LO is now more affordable, with a price decrease of Rs100,000, or 2.2 per cent, bringing its new price to Rs4.399 million. 

    Similarly, the top variant, 1.5 CVT Aero, will now be available at Rs5.849 million after a reduction of Rs120,000. 

    The Toyota Corolla’s variant prices have been reduced between Rs200,000 and Rs250,000. Furthermore, Toyota’s pickup Revotrucks are now more budget-friendly, with price reductions ranging from Rs450,000 to Rs790,000.

    One of the most notable changes is seen in the Fortuner G4x2 Petrol STD, which will now be priced at Rs14.499 million after a substantial reduction of Rs1.31 million, or 8.3 per cent.

    This price adjustment follows the footsteps of other major players in the industry, including MG Motors and Lucky Motor Corporation (LMC), both of which have also announced price reductions for their vehicles.

    The automobile sector in Pakistan has faced challenges recently, mainly due to fluctuating exchange rates and restrictions on imports. 

    The rupee experienced a significant depreciation against the dollar, reaching a record low of Rs307.1 on September 5. 

    However, it has since recovered, stabilising around the Rs279–280 level. This positive trend aligns with the efforts of the caretaker government, which took measures against smugglers and hoarders, contributing to the currency’s recovery.

    Apart from currency fluctuations, the auto sector was affected by previous government policies, including import restrictions aimed at preserving foreign exchange reserves. 

    Additionally, higher finance costs and a considerable rise in car prices led to a decrease in consumer demand. In the first quarter of FY24, car sales in Pakistan plummeted to 20,983 units, marking a 40 per cent decline compared to the same period the previous year.

    Here are the latest prices of all Toyota cars in Pakistan:

    Car Model Variant Old Price (Rs.) New Price (Rs.) Price Reduction (Rs.)
    Yaris 1.3 MT LO 4,499,000 4,399,000 100,000
      1.3 CVT LO 4,789,000 4,689,000 100,000
      1.3 MT Hi 4,759,000 4,659,000 100,000
      1.3 CVT Hi 4,999,000 4,899,000 100,000
      1.3 CVT Aero 5,199,000 5,099,000 100,000
      1.5 MT 5,429,000 5,309,000 120,000
      1.5 CVT 5,769,000 5,649,000 120,000
      1.5 CVT Aero 5,969,000 5,849,000 120,000
    Corolla 1.6 MT 6,169,000 5,969,000 200,000
      1.6 CVT 6,769,000 6,559,000 210,000
      1.6 CVT SR 7,429,000 7,189,000 240,000
      1.8 CVT 7,119,000 6,889,000 230,000
      1.8 CVT SR 7,759,000 7,509,000 250,000
      1.8 CVT SR BLK 7,799,000 7,549,000 250,000
    Hilux Revo E 11,439,000 11,039,000 400,000
      G 12,409,000 11,959,000 450,000
      G 13,019,000 12,549,000 470,000
      V AT 2.8 14,389,000 13,849,000 540,000
      V AT Rocco 15,179,000 14,419,000 760,000
      GR S 16,149,000 15,359,000 790,000
    Fortuner 2.7 G Petrol 15,809,000 14,499,000 1,310,000
      2.7 V Petrol 18,099,000 16,999,000 1,100,000
      2.8 Sigma 5 Diesel 19,079,000 17,999,000 1,080,000
      Legender Diesel 20,129,000 18,999,000 1,130,000
      GRS 21,089,000 19,899,000 1,190,000
  • Here’s why Toyota Indus Motor Company is halting car production for one month

    Here’s why Toyota Indus Motor Company is halting car production for one month

    Indus Motor Company (IMC), the leading manufacturer of Toyota vehicles in Pakistan, has announced a temporary production suspension lasting a month due to inventory shortages.

    The company informed the Pakistan Stock Exchange (PSX) of this development.

    Starting on October 17 and concluding on November 17, 2023, Toyota IMC has chosen to halt production in response to insufficient inventory of vehicles and parts stemming from supply chain challenges.

    The company has stated that they will keep stakeholders informed of any adjustments to this plan. This marks the ninth production closure announcement by Indus Motor this year. In the previous month, the company ceased plant operations from September 28 to October 9 due to similar inventory issues.

    In its most recent financial report, Indus Motor recorded a profit-after-tax (PAT) of Rs9.66 billion for FY23, representing a nearly 39 per cent decline compared to the earnings of Rs15.8 billion in the preceding year’s corresponding period.

    The Pakistani auto sector, heavily reliant on imports, has encountered hardships due to government measures to restrict imports and limit LC issuance. Elevated financing costs and substantial car price hikes have also dampened consumer demand.

    In the first quarter of FY24, sales figures reached 20,983 units, reflecting a 40 per cent decrease compared to the same period in the prior year.

    The Pakistani automotive industry is grappling with dwindling demand, primarily attributed to soaring prices, costly auto financing, and increased taxes, all contributing to a year-on-year decline in sales.

  • Inventory challenges lead Indus Motor Company to halt Toyota car production in Pakistan

    Inventory challenges lead Indus Motor Company to halt Toyota car production in Pakistan

    Indus Motor Company Limited, the firm responsible for the assembly of Toyota vehicles in Pakistan, has recently announced a temporary suspension of its production operations until October 9. This significant decision was formally communicated through a notice submitted to the Pakistan Stock Exchange (PSX).

    The rationale behind this temporary cessation of production is primarily linked to the company’s current vehicle inventory status. Indus Motor Company Limited has set the production plant’s closure period from September 28 through October 9 to address these concerns.

    This pause in production is the latest in a series of similar actions undertaken by the company. Previously, Indus Motor Company Limited had temporarily halted production from August 25 to September 6, attributing it to reduced demand and inventory challenges. Additionally, the company faced a production plant shutdown from July 21 to August 3, driven by complications in the importation of raw materials, logistical hurdles in clearing consignments, and disruptions in the supply chain from select international vendors.

    These issues collectively hampered the company’s supply chain, leading to insufficient inventory levels to sustain uninterrupted production. Furthermore, a similar production hiatus had occurred earlier, from June 26 to June 27, with the same underlying reasons.

  • Toyota resumes production after system malfunction halts operations 

    Toyota resumes production after system malfunction halts operations 

    Toyota Motor is set to resume production at its assembly plants in Japan on Wednesday after a recent system malfunction forced a halt in domestic production. The disruption not only affected the world’s largest-selling automaker but also caused disruptions across its supply chain.

    Toyota’s plans to restart operations across 25 production lines in twelve plants within its home market are scheduled to begin on Wednesday morning. The last two plants will come back online in the afternoon.

    The automaker is currently investigating the root cause of the system failure, which prevented Toyota from procuring the necessary components for its production.

    This setback impacted approximately one-third of Toyota’s global production capacity. Toyota’s domestic production was in the process of recovering from output cuts attributed to semiconductor shortages.

    Toyota experienced a 29 per cent increase in output during the first half of the year, marking its first such growth in two years.

    Industry experts have pointed out the challenge Toyota faces in making up for the production loss due to the system outage. One potential strategy could be running extra shifts, although the automaker was already operating at full capacity.

    The system failure also had a cascading impact on other companies within the Toyota Group. Toyota Industries, a group firm, reported partial suspension of operations at two engine plants due to the automaker’s system glitch.

    This incident shed light on Toyota’s reliance on just-in-time inventory management, which aims to minimize costs but leaves the company vulnerable to supply chain disruptions.

    While the exact cause of the malfunction is still being investigated, it underscores the sensitivity of modern manufacturing processes to unforeseen interruptions.

    The broader context in Japan includes reports of harassing phone calls received by businesses and government offices, possibly due to geopolitical factors. These calls have been linked to China and the decision to release treated radioactive water from the damaged Fukushima nuclear power plant into the Pacific Ocean.

  • Toyota is working on fake manual transmission to add excitement to electric cars

    Toyota is working on fake manual transmission to add excitement to electric cars

    Toyota engineers have taken a unique approach to attract consumers who find electric cars lacking excitement by working on a realistic-feeling fake manual transmission as a potential feature.

    Although a manual transmission in an electric vehicle would serve no functional purpose, it would cater to enthusiasts who enjoy the experience of shifting gears in their conventional gasoline-powered cars.

    Toyota, a brand historically skeptical of electric vehicles, has been planning a more aggressive foray into the sector. Acknowledging the need to appeal to a diverse range of consumers, the development of features such as a fake manual transmission aims to entice individuals who are not captivated by the typical smoothness and simplicity associated with electric vehicles.

    It is worth noting that the majority of gasoline-powered cars sold in the United States today are equipped with automatic transmissions that require no driver input for shifting gears.

    Manual transmissions, which require the driver to operate a clutch pedal and maneuver a gear stick, are often offered as options for performance cars or inexpensive models. However, manual transmissions are more prevalent in other parts of the world, including Europe.

    In the case of Toyota’s innovation, as revealed in a recent patent application filed in the United States in late May, the electric car would not possess an actual multi-speed transmission. Instead, a shifter would be connected to sensors and a central computer programmed to replicate the sensation of driving a car with a manual transmission.

    Since manual transmission cars vary in terms of engines, transmissions, and gear ratios, the central computer would be programmed to emulate a specific type of manual transmission car. In addition to the conventional brake and accelerator pedals, the driver would also have a clutch pedal to complete the simulated experience.

    Furthermore, drivers will have the ability to “downshift” or engage in engine braking. This process involves selecting a lower gear and releasing the clutch pedal without pressing the accelerator, allowing the friction of the unpowered engine to slow the car without the need for brakes.

    Toyota’s virtual manual transmission incorporates programming that enables drivers to experience the sensation of operating it poorly, to a certain extent.

    If the driver fails to provide sufficient acceleration or selects an incorrect gear, the car will simulate the shaking and bucking experienced in a gas-powered vehicle with a manual transmission. However, the car’s computer will limit the intensity of these effects to prevent undue strain on the battery.

    Importantly, if drivers prefer not to use the fake manual transmission, the car will offer two driving modes: a regular electric vehicle mode and the faux-manual mode.

    While some reports suggest the inclusion of fake engine sounds to accompany the shifting and accelerating actions, the patent application does not explicitly mention it. The availability, timing, and target markets for the electric vehicle equipped with the simulated manual transmission remain uncertain at this point.

    Toyota’s innovative endeavor showcases the company’s commitment to diversifying its electric vehicle offerings and catering to a wider range of consumer preferences.

    By blending the familiarity of manual transmissions with the benefits of electric vehicles, Toyota aims to capture the attention of enthusiasts while providing an engaging driving experience in an increasingly electrified automotive landscape.

  • Toyota Indus Motor Company sees 142% increase in quarterly profit despite low demand

    Toyota Indus Motor Company sees 142% increase in quarterly profit despite low demand

    Indus Motor Company (IMC) announced a 37 per cent decrease in its profit-after-tax (PAT) for the third quarter of financial year 2022-23, with earnings of Rs3.216 billion compared to Rs5.118 billion in the same period last year.

    Despite this, the automaker saw an increase in its quarterly PAT by 142 per cent, which was attributed to an improvement in gross margins, resulting in an operating profit after two consecutive quarterly operating losses. The company also declared an interim cash dividend of Rs24.4 per share, in addition to the previously paid interim cash dividend of Rs18.4 per share.

    Muhammad Abrar, an investment analyst at Arif Habib Limited, explained that IMC was able to offset the impact of currency devaluation by raising the prices of its cars significantly. The automaker’s operating expenses were also curtailed. While revenue decreased by 29 per cent due to lower units sold, IMC’s gross profit was Rs3.05 billion during 3QFY23, compared to Rs5.23 billion in the same period last year.

    Pakistan’s auto sector has been struggling due to the government’s decision to curb imports and restrict issuance of Letters of Credit (LC), higher finance cost, and massive increases in car prices. Despite this, IMC’s gross margins improved to 6.3 per cent on a QoQ basis, which was unexpected, according to Abrar.

    According to Brecorder, the company’s earnings per share (EPS) stood at Rs40.92, compared to Rs65.11. IMC’s board of directors met to review the company’s financial and operational performance in the first nine months ended March 31, 2023. While higher profits are expected in the upcoming quarter due to the increase in car prices and the reduction of operating expenses, the country’s auto industry reported a 66 per cent decrease in car sales compared to March 2022.

    Last week, Pak Suzuki Motor Company Limited also reported its highest-ever quarterly loss of Rs12.9 billion in the first three months of 2023 due to decreased sales and high finance costs.

  • Toyota IMC announces shutdown of production plant once again due to parts shortage

    Toyota IMC announces shutdown of production plant once again due to parts shortage

    Indus Motor Company Limited (INDU), the company known for assembling and selling Toyota-brand vehicles in Pakistan, has announced the temporary shutdown of its production plant from March 24 to March 27 due to raw material and component shortages.

    In a notice to the Pakistan Stock Exchange (PSX), Indus Motor cited difficulties in opening Letters of Credit (LCs) for raw materials by banks, which have caused a disruption in the supply chain of the company and its vendors.

    As a result, the company is unable to continue its production activities due to insufficient inventory levels. This is the second time this year that Indus Motor has announced the shutdown of its plant, with the first being from February 1 to February 14 due to an inventory shortage.

    The CEO of Indus Motor, Ali Asghar Jamali, had previously acknowledged the challenges facing the local auto industry, including the restrictions on Completely Knocked Down (CKD) kits, which have resulted in manufacturers operating at only 40-45 per cent of their capacity.

    The auto industry in Pakistan is heavily reliant on imports and has been affected by the State Bank of Pakistan’s (SBP) restrictions on the opening of LCs, following a sharp depreciation of the rupee.

    The SBP has imposed restrictions on imports due to the country’s low foreign exchange reserves, which has resulted in operational hindrances for many industries, including the auto sector.

    Although the SBP withdrew import restrictions in January, many industries are still struggling due to the dollar shortage.