Category: Automotive

PkRevenue provides stories related to automotive industry. We focus on auto policy of Pakistan. The coverage also includes sales of domestic manufacturing.

New prices of Toyota Cars in Pakistan
KARACHI: Toyota Motors has announced new rates of its cars in Pakistan, which are applicable from July 29, 2022.

According to Toyota Port Qasim Motors, the following are new ex-showroom indicative rates for both filers of income tax return non-filers:

READ MORE: Toyota Indus Motors announces plant shutdown

Following are the new indicative rates for all variants of Toyota Yaris:
1. Toyota Yaris GLI 1.3 MT (1329CC): for filers Rs3,860,500; for non-filers Rs3,960,500.
2. Toyota Yaris GLI 1.3L CVT: for filers 4,100,500; for non-filers 4,200,500.
3. Toyota Yaris ATIV 1.3L MT: for filers 4,060,500; for non-filers 4,160,500.
4. Toyota Yaris ATIV 1.3L CVT: for filers 4,270,500; for non-filers 4,370,500.
5. Toyota Yaris ATIVX 1.5L MT (1496 CC): for filers 4,370,500; for non-filers 4,470,500.
6. Toyota Yaris ATIVX 1.5L CVT: for filers 4,630,500; for non-filers 4,730,500.
READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

Following are the new indicative rates for all variants of Toyota Corolla:
1. Corolla ALTIS MT 1.6L: for filers 4,960,500; for non-filers 5,060,500.
2. Corolla ALTIS AT 1.6L: for filers 5,200,500; for non-filers 5,300,500.
3. Corolla ALTIS AT 1.6L (Special Edition): for filers 5,700,500; for non-filers 5,800,500.
4. Corolla ALTIS CVT 1.8L: for filers 5,840,500; for non-filers 6,140,500.
5. Corolla ALTIS GRANDE CVT 1.8L (Beige interior): for filers 6,310,500; for non-filers 6,610,500.
6. Corolla ALTIS GRANDE CVT 1.8L (Black interior): for filers 6,350,500; for non-filers 6,650,500.
READ MORE: Toyota lowers July production in Japan

Following are the new indicative rates for all variants of Toyota Hilux Single Cabin:
1. 4×2 Single Cabin STD: for filers 6,271,500; for non-filers 6,871,500.
2. 4x2S/CDE CKLESS: for filers 5,841,500; for non-filers 6,441,500.
3. 4×4 S/C STD: for filers 8,291,500; for non-filers 9,091,500.
Following are the new indicative rates for all variants of Toyota Hilux Revo Double Cabin:
1. 4×4-D/CSTD E MT: for filers 9,452,500; for non-filers 10,252,500.
2. 4×4 REVO G M/T: for filers 10,232,500; for non-filers 11,032,500.
3. 4×4 REVO G A/T: for filers 10,712,500; for non-filers 11,512,500.
4. 4×4 REVO V A/T: for filers 11,762,500; for non-filers 12,562,500.
5. 4×4 ROCCO V A/T: for filers 12,412,500; for non-filers 13,212,500.
READ MORE: Indus Motors rebuts plant shutdown reports

Following are the new indicative rates for all variants of Toyota Fortuner:
1. Fortuner G 4×2 STD 2.7L AT (Petrol): for filers 12,902,500; for non-filers 13,702,500.
2. Fortuner V 4×4 2.7L ATHI (Petrol): for filers 14,692,500 for non-filers 15,492,500.
3. Fortuner (S4) 4×4 AT 2.8L (Diesel): for filers 15,482,500; for non-filers 16,282,500.
4. Fortuner Legender (S4) 4×4 AT 2.8L (Diesel): for filers 16,252,500; for non-filers 17,052,500.
July 30, 2022
Careem customers donate Rs10.3 million

KARACHI: Careem, the Super App for the greater Middle East and Pakistan on Friday announced they received donations worth Rs10.3 million during last two years through its reward feature.

These donations were made by customers using the Careem app to multiple reputable charities including, Indus Hospital, The Citizens Foundation (TCF), World Wide Fund for Nature-Pakistan (WWF-Pakistan), NOWPDP, SOS Children’s Village, CYTE Foundation, Saylani Welfare Trust and Shahid Afridi Foundation (SAF).

READ MORE: SBP issues electronic money license to Careem Pay

The donation amount was revealed at an event where notables from multiple charities and Careem were present.

Feroz Jaleel, Country Head, Careem Pakistanexpressed his gratitude for this generous initiative and said “We believe technology has the potential to act as an enabler in society, allowing people to donate using our Super App.

It makes me very happy that our customers have come forward and contributed to the betterment of society. It is our responsibility to look after the less fortunate and support those in need”.

READ MORE: Careem signs agreement to provide logistic solution to Unilever

Careem rewards are virtual redeemable points that customers receive upon using any of the available services in the mobile application across the region.

In Pakistan, customers get these points from taking a ride to using the delivery service or mobile phone recharge. Customers can redeem these points to get buy-one-get-one meals, discounts on entertainment and shopping from a variety of options available in the rewards section.

READ MORE: Careem Pakistan asked to facilitate expatriates availing services in country

These points can also be used to donate to charitable organizations to help them support the less fortunate people in society and make the world a better place to live.

Careem has more than 800,000 Captains registered on its platform so far. As the region’s multi-service application, Careem offers multiple opportunities as it expands its services from the mobility of people to mobility of things and money including daily essential deliveries, peer-to-peer credit transfer, and mobile top-ups.

July 29, 2022
Toyota Indus Motors announces plant shutdown

KARACHI: Indus Motors Company Limited, the manufacturer of Toyota cars in Pakistan, on Friday announced to temporary shutdown of its plant.

In a communication sent to Pakistan Stock Exchange (PSX), the company said that due to unforeseen devaluation of the Pakistani Rupee, coupled with the Government restrictions, including the LC approval constraints rendering it impossible to import CKD kits without prior permission, and the continuing economic instability, the company is facing hurdles in import of CKD kits and components which is adversely affecting the supply chain and production activities.

READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

“The aforesaid delay and unforeseen factors have resulted in insufficient inventory levels as would be required to maintain further production. The situation is forcing the company towards a temporary production to shutdown and closure of the company’s plant.”

In the light of above, the company on July 29, 2022 decided to temporarily shut down its production plant from August 01, 2022 to August 13, 2022.

Previously the company said that the auto sector is facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

READ MORE: Toyota lowers July production in Japan

The company further added that “the unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry.”

The company clarified that as of July 27, 2022, there were no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

In a statement issued by the company on July 27, 2022, the company stated that taking the economic challenges and uncertainty into consideration, customers who wish to cancel their order bookings will be refunded 100 per cent of the deposited amount along with a mark-up payment.

READ MORE: Indus Motors rebuts plant shutdown reports

Mark-up shall be paid from the date of receipt of payment by the Company to the date of cancellation of the order, without any deduction of administrative charges.

In light of this uncertainty, the tentative delivery timelines mentioned in the PBO for pending orders are being provisionally pushed back by at least 3 months. The price prevailing at the time of delivery shall continue to be applicable.

July 29, 2022
Pakistan decides to lift ban on imported goods

ISLAMABAD: Pakistan on Thursday decided to lift the ban imposed on imported goods except for Completely Built Unit (CBU) of motor vehicles, mobile phones and home appliances.

A review meeting was held to review the ban after two months owing to serious concerns raised by major trading partners on the imposition of ban and considering the fact that the ban has impacted supply chains and domestic retail industry.

READ MORE: 15% surcharge imposed for clearance of banned items

In the light of fact that imports substantially reduced due to consistent efforts of the government, the Economic Coordination Committee of the Cabinet (ECC) decided to lift the ban on imported goods except for Auto CBU, Mobile CBU and Home Appliances CBU.

The committee also decided that all held up consignments (except items which still remain in banned category) which arrived at the ports after July 01, 2022 may be cleared subject to payment of 25 per cent surcharge.

Ministry of Commerce submitted a summary on prohibition/complete quantitative restrictions on import of non-essential and luxury items.

It was submitted that in order to curtail the rising current account deficit (CAD), ban on the import of about 33 classes/categories of goods was imposed with the approval of the Cabinet.

READ MORE: Pakistan allows release of banned items stuck up at ports

Due to the decision, the overall imports of the banned items have shrunk by over 69 per cent i.e. from $ 399.4 million to $ 123.9 million.

Recently, the ministry of commerce had imposed surcharge up to 15 per cent for clearance of consignments stuck up at ports and were banned for saving foreign exchange.

The ministry of commerce issued an office memorandum dated July 22, 2022 pursuance to the federal cabinet decision to release the consignments of prohibited items.

The government through SRO 598(I)/2022 dated May 19, 2022 imposed a complete ban on the import of luxury and non-essential items.

However, a large number of containers were stuck up at ports that were arrived after the imposition of ban.

READ MORE: KCCI demands release of stuck up containers

The Federal Cabinet on July 15, 2022 allowed the release of all those consignments/shipment which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and were pending customs clearance.

However, this clearance was subject to condition that consignments had landed at any port including sea, air or dry port of the country on or before June 30, 2022 subject to payment of surcharge to be imposed on the cost and freight value of goods.

According to the ministry of commerce, five per cent surcharge has been imposed on the shipment which had arrived within two weeks of issuance of the SRO 598(I)/2022.

Further, 15 per cent surcharge has been imposed on shipment which had arrived after two weeks of issuance of SRO 598(I)/2022 till June 30, 2022.

Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

READ MORE: Committee recommends lifting import ban on luxury items

Previously, the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

July 29, 2022
Super tax to hammer auto business in Pakistan: Honda Atlas

KARACHI: Honda Atlas Cars (Pakistan) Limited on Thursday said that super tax to hammer the already thin margins of the auto business in the country.

The company in its detailed financial report said: “The imposition of Super Tax will further hammer the already thin margins of auto business.”

The company said that the automobile industry is considered as one of the key sectors for rapid transformation of the economy.

READ MORE: Suzuki Motors warns plant shutdown in Pakistan

Likewise, the automobile industry of Pakistan epitomizes considerable growth, capacity building and technological prowess.

“The current state of auto sector, however, has matured differently through the quarter under review. Adverse USD/PKR exchange rate parity and global supply glitches continue to undermine the Industry’s potential throughout,” it said.

Moreover, the fiscal measures adopted by the State Bank of Pakistan (SBP) for the management of foreign reserves has unavoidably impacted the import and production schedules lately.

READ MORE: Indus Motors rebuts plant shutdown reports

Rupee devaluation has approached an alarming level under the vague economic and political direction; further aggravating the situation.

“Resultantly, the car customers are facing delays in delivery, hikes in prices and temporary non- availability of some car variants,” the company said.

Honda Atlas Cars said during the period under review, the sales and production of the four-wheeler segment have not been up to the Industry’s expectation owing to curbed auto lending, escalating inflation and soaring fuel prices.

The overall industry production for the three months ended June 2022 remained 71,745 units in comparison with 53,915 units a year ago while car sales were observed at 73,815 units against 46,679 units during the same period.

READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

The company produced 9,324 units against 7,826 units and sold 9,446 units as compared to 7,598 units in the same period of last financial year.

The recently approved Federal Budget 2022-2023 also poses tough times ahead for the auto industry. Amid negotiations with International Monetary Fund (IMF), to release the bailout package, the Government had to enforce stringent stabilization measures. Accordingly, the purchase of automobiles with engine capacity exceeding 1300CC has now been subject to 1 per cent of Capital Value Tax (CVT).

The advance tax on vehicles with engine capacity above 1600CC has also been significantly increased.

These revenue measures by the Government will further burden the customers, which may affect the Industry’s sales volume.

READ MORE: Toyota lowers July production in Japan

The imposition of Super Tax will further hammer the already thin margins of auto business.

The auto industry may experience a further slowdown in anticipation of price revision and rising interest rates.

Ranging from raw material sourcing to management of stable commodity pricing and customary lead time, the automobile industry is currently in the midst of multiple challenges.

During the quarter, the OEMs have managed to avoid potential shut down of production due to relatively higher stock levels. This led to improved financial results for the 1st quarter of the new financial year.

During the three months ended June 30, 2022, the Company achieved net sales revenue of Rs 30,246 million as compared to Rs 21,765 million in the corresponding period last year.

Higher production volumes with better overhead absorption helped to generate gross profit of Rs 1,915 million against Rs 1,595 million, a year ago. The selling and administrative expenses were increased to Rs 575 million against Rs 363 million.

Other income improved to Rs 526 million against Rs 335 million owing to customers’ confidence on the Company’s products and better funds management; benefited by increased interest rates.

The Company posted Rs 1,094 million as profit before tax in comparison to Rs 1,364 million. After statutory tax adjustments, including super tax provision, the net profit for the three month period ended June 30, 2022 came out Rs 658 million as compared to Rs 928 million of the corresponding period last year.

The earning per share remained Rs 4.61 against Rs 6.50 for three months of the last year.

July 28, 2022
Suzuki Motors warns plant shutdown in Pakistan

KARACHI: Suzuki Motors Co. Ltd. on Thursday warned shutting down its production plant in Pakistan due to import restrictions.

In a communication sent to Pakistan Stock Exchange (PSX), the auto manufacturer said that State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKD) vide circular No. 09 of 2022 dated May 20, 2022.

READ MORE: Indus Motors rebuts plant shutdown reports

“Restrictions had adversely impacted clearance of import consignments of the company from the ports which might result in shutdown of the plant in near future,” the company said, adding that Pak Suzuki has stopped bookings of its products since July 01, 2022.

The company further clarified that at present it had not plan to shut down the plant. “The production schedule of the company and any non-production days remain contingent on a number of external factors,” it said.

READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

The company is actively monitoring its production and operations and is closely working with the government of Pakistan and the central bank to alleviate the present challenges.

A day earlier, Indus Motors Company– the manufacturers of Toyota cars in Pakistan, also issued a statement in this regard.

READ MORE: Toyota lowers July production in Japan

The IMC said that the auto sector was facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

“The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the IMC said.

The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

READ MORE: COVID-19 cases reported at Toyota work sites

July 28, 2022
Toyota Indus Motors offers 100% refunds on booking cancellation

KARACHI: Toyota Indus Motors on Wednesday announced to refund 100 per cent amount and mark-up on booking cancellation.

In a statement issued by Indus Motor Company, the company said that it is facing unprecedented difficulties in its operations due to factors beyond the Company’s control.

The company further stated that we will continue to do our utmost to facilitate and support our customers during these difficult times.

READ MORE: Toyota lowers July production in Japan

Taking the economic challenges and uncertainty into consideration, customers who wish to cancel their order bookings will be refunded 100 per cent of the deposited amount along with a mark-up payment.

Mark-up shall be paid from the date of receipt of payment by the Company to the date of cancellation of the order, without any deduction of administrative charges.

In light of this uncertainty, the tentative delivery timelines mentioned in the PBO for pending orders are being provisionally pushed back by at least 3 months. The price prevailing at the time of delivery shall continue to be applicable.

READ MORE: Indus Motors rebuts plant shutdown reports

We extend our sincere apologies to all the customers who are facing delays with their orders due to these unforeseen circumstances and would like to reassure our valued customers that we are working closely with the Government and the regulatory authorities to minimize the delay as much as possible.

The unforeseen devaluation of the Pakistani Rupee, coupled with the Government restrictions, including the LC approval constraints rendering it impossible to import CKD kits without prior permission, and the continuing financial instability have led to a force majeure situation.

Due to the current conditions, IMC’s production has been radically disrupted and we are unable to produce the requisite units as per full capacity, resulting in the delay in tentative delivery schedules.

We are presently unable to foresee how long these and other external factors will persist, and cannot rule out the possibility of disruptions to manufacturing in the near future.

READ MORE: COVID-19 cases reported at Toyota work sites

July 27, 2022
Toyota lowers July production in Japan

Toyota Motor Corporation has announced a downward revision of its production forecast for July 2022, attributing the adjustment to an ongoing parts shortage exacerbated by the impact of the COVID-19 pandemic.
(more…)

July 27, 2022
Indus Motors rebuts plant shutdown reports

KARACHI: Indus Motors Company Limited (IMC), the manufacturer of Toyota motors in Pakistan, on Wednesday strongly rebuts the news reports about complete shutdown of its plants.

In a communication sent to Pakistan Stock Exchange (PSX), the company said IMC acknowledged the auto sector is facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

READ MORE: COVID-19 cases reported at Toyota work sites

“The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the company said.

The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

READ MORE: Hyundai, Kia sign pact to develop mobility to explore moon

“The production schedule of the company and any non-production days remain contingent on a number of external and variable factors,” the company said.

The company is actively monitoring its production and operations, and is closely working with the government and the SBP to alleviate the present challenges.

The company in its communication said that in the event that there is any material update regarding the aforesaid matter, it will be timely communicated to the PSX as per the requirement of PSX regulations.

READ MORE: Hyundai announces second quarter financial results

July 27, 2022
Hyundai, Kia sign pact to develop mobility to explore moon

SEOUL, Korea: Hyundai Motor and Kia Corporation on Wednesday signed agreements with six Korean research institutes to develop mobility solutions to explore the surface of the moon.

Hyundai Motor and Kia, who have pioneered endless possibilities for mobility expansion through innovative technologies such as robotics and Advanced Air Mobility (AAM), are now expanding their vision beyond the bounds of Earth and into space.

READ MORE: COVID-19 cases reported at Toyota work sites

The announcement follows Korea’s successful launch of a domestically produced rocket in June.

Yong Wha Kim, Executive Vice President, and Head of R&D Planning & Coordination Center of Hyundai Motor and Kia said “We have taken the first step towards transforming our vision for robotics and the concept of Metamobility into reality.”

“We will expand the scope of human movement experience beyond traditional means of transport and beyond the bounds of Earth to further contribute to the progress of humankind and help create a better future.” He added.\

READ MORE: Honda Cars declares 29% fall in quarterly profit

The signing ceremony held in Korea was attended by Chung Kook Park, President and Head of R&D Division of Hyundai Motor and Kia as well as top officials from the six research institutes: Korea Atomic Energy Research Institute (KAERI); Korea Aerospace Research Institute (KARI); Korea Astronomy and Space Science Institute (KASI); Korea Automotive Technology Institute (KATECH); Korea Institute of Civil Engineering and Building Technology (KICT); and Electronics and Telecommunications Research Institute (ETRI).

With collaboration expected to start as early as August, the consultative body will define the concept of lunar exploration mobility and major core technologies while developing and reviewing specific strategies and implementation measures to operate on the moon. Hyundai Motor and Kia will support the consultative body with their smart mobility technologies.

READ MORE: Honda to slash production on supply constraints

Under the multilateral research agreement, the participants from the private and government sectors will integrate their knowledge and capabilities to significantly advance their existing technologies and engineer new solutions for moon exploration mobility. Expertise will be brought to bear across numerous areas, including exploration equipment, software for mobility operation and remote communication functionality.

With no air, extreme temperatures and countless craters and coatings of lunar dust composedof sharp and abrasive particles, the moon’s surface is an exceptionally harsh environment. While it poses significant challenges to the development of surface exploration mobility, it also provides the ultimate proving ground and will deliver invaluable lessons for Hyundai and Kia to further accelerate the delivery of smart and sustainable mobility solutions on earth.

READ MORE: Suzuki starts producing outboard motors with plastic collecting device

Hyundai and Kia have formed an internal consultative body with key personnel for the development and operation of lunar surface mobility. Resources will be brought to bear from Hyundai and Kia’s Robotics Lab in charge of robot development. Hyundai and Kia will also collaborate on software and hardware design and interpretation, space environment response technology, and special equipment for conducting lunar exploration missions.

The multilateral agreement to develop mobility for exploring the moon’s surface represents a seminal moment in the history of Hyundai Motor and Kia that expands their vision for future mobility, including Robotics and AAM, to areas beyond the Earth. Hyundai and Kia also expect to secure proprietary technologies for future mobility businesses in the process of the new lunar exploration mobility robotics development.

In January, Hyundai Motor announced its robotics vision of ‘Metamobilty’ to help overcome the limitations of movement at CES 2022, which featured a video of Boston Dynamics’ robot, named ‘SPOT’, exploring outer space.

READ MORE: Hyundai announces second quarter financial results

July 27, 2022