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Category: Automotive

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

  • Peshawar Customs to auction motor vehicles on August 11, 2022

    Peshawar Customs to auction motor vehicles on August 11, 2022

    ISLAMABAD: Collectorate of Customs (Enforcement), Peshawar has announced auction of motor vehicles to be held on August 11, 2022 at state warehouses of Peshawar, Mardan and Nowshera.

    The Collectorate issued the auction schedule for following vehicles:

    LIST OF VEHICLES RIPE FOR AUCTION SWH GODOWN-E, PESHAWAR

    01. Mercedes Benz (Bullet Proof) Model 1982, Chassis No. WDB-12603312037551

    02. Toyota Corolla Car Model 1987 (As per Website), Chassis No. CE90-3002413

    READ MORE: Gwadar customs auctions motor vehicles on July 28, 2022

    03. Toyota Crown Car Model 2000 (As per Website), Chassis No. GS171-0001109

    04. Toyota Hilux Surf Model 1990 (As per Website), Chassis No. LN130-0018395

    05. Suzuki Splash Liana Car Model 2005 (As per documents), Chassis No. JSAERC11S00200283

    06. Toyota State Car Model 1990 (As per Website), Chassis No. CE96-0089577

    07. Toyota Fielder “X” Car Model 2002 (As per Website), Chassis No. NZE124-0018888

    08. Toyota Corolla “X” Car Model 2000 (As per Website), Chassis No. NZE121-3021387

    READ MORE: Peshawar Customs announces auction of motor vehicles on July 26, 2022

    09. Toyota Corolla  Car Model 1993 (As per Website), Chassis No. CE106-0049233

    10. Toyota Corolla  Car Model 1987 (As per Website), Chassis No. CE90-5002682

    11. Toyota Corolla  Car Model 1985 (As per Website), Chassis No. EE80-0060788

    12. Toyota Corolla  Car Model 1988 (As per Website), Chassis No. CE90-0023057

    LIST OF VEHICLES RIPE FOR AUCTION SWH MARDAN

    01. Toyota State Car Model 1990 ( As per Website), Chassis No. CE96-0106153

    02. Toyota Corolla Car Model 1992 (As per Website), Chassis No. CE100-3025153

    READ MORE: MCC Gwadar to auction motor vehicles on July 18, 2022

    03. Toyota Estate Car Model 1998 (As per Website), Chassis No. CE100-0073091

    04. Toyota Corolla Car Model 1990 (As per Website), Chassis No. CE90-0050358

    05. Toyota Corolla  Altis Car Model 2005 (As per Website), Chassis No. MRO53ZEC107097220

    06. Toyota Corolla  Car Model 2005 (As per Website), Chassis No. NZE121-3301287

    07. Toyota Corolla  Altis Car Model 2005 (As per Website), Chassis No. MRO53ZEC107096483

    READ MORE: Customs to auction NDP vehicles on June 8, 2022

    08. Toyota Vitz Car Model 2007 (As per Website), Chassis No. SCP90-5083411

    LIST OF VEHICLES RIPE FOR AUCTION SWH NOWSHERA

    01. Toyota Fielder “X” Car Model 2004 (As per Website), Chassis No. NZE121-0318355

  • New prices of Honda Cars in Pakistan

    New prices of Honda Cars in Pakistan

    KARACHI: Honda Khair, the authorized dealership of Honda Motors in Pakistan announced the new prices of its cars effective from July 30, 2022.

    According to Honda Khair, following are the new showroom prices of Honda cars:

    The new price of City MT 1.2L is Rs4,049,000.

    The new price of City CVT 1.2L is Rs4,199,000.

    The new price of City CVT 1.5L is Rs4,439,000.

    The new price of City Asp MT 1.5L is Rs4,609,000.

    The new price of City Asp CVT 1.5L is Rs4,799,000.

    The new price of BR-V CVT S is Rs5,299,000.

    The new price of Civic 1.5L M CVT is Rs6,799,000.

    The new price of Civic 1.5L Oriel M CVT is Rs7,099,000.

    The new price of Civic RS 1.5LL CVT is Rs8,099,000.

    READ MORE: Super tax to hammer auto business in Pakistan: Honda Atlas

    The 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.

    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: Honda Cars declares 29% fall in quarterly profit

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

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

    READ MORE: Honda to slash production on supply constraints

    “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.

  • Honda continue to provide technical support for RBPT

    Honda continue to provide technical support for RBPT

    JAPAN: The Honda Racing Corporation (HRC), which is the subsidiary of Honda Motors Co. Ltd on Tuesday agreed to provide technical support for Red Bull Powertrains (RBPT), relating to Formula 1 power units from 2023 to the end of 2025.

    The press release issued on August 02, 2022 stated that in 2022, HRC has been providing PU-related technical support in line with Red Bull’s request to Honda, with both Oracle Red Bull Racing and Scuderia AlphaTauri therefore using the PU from the support program.

    READ MORE: Super tax to hammer auto business in Pakistan: Honda Atlas

    The extension of the existing agreement for HRC to continue providing technical support from 2023 to 2025 has now been mutually agreed between Red Bull and Honda.

    Honda officially ended its participation in Formula 1 at the end of 2021, with the resources allocated to PU development diverted to meet the company’s future carbon-neutral goals.

    The ongoing agreement between the two parties does not involve PU development, therefore HRC will be able to provide this service from within its current resources.

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

    Dr. Helmut Marko, Motorsport Advisor, Oracle Red Bull Racing said, “We thank Honda for their positive response to working together. We are excited to continue our partnership in F1 until the end of 2025 with the PU supplied by Honda. We have had a successful relationship so far, winning the Drivers’ championship in 2021 and currently leading the Drivers’ and Teams’ classifications, with the aim of securing both 2022 titles.”

    Christian Horner, Red Bull Powertrains CEO and Team Principal said, “Red Bull’s partnership with Honda has been an incredibly successful one and we are pleased that this will continue until the end of the current era of the FIA’s power unit regulations in 2025.”

    READ MORE: Honda to slash production on supply constraints

    Koji Watanabe, Head of Corporate Communications Supervisory Unit, Honda Motor Co., Ltd. and President of Honda Racing Corporation said, “We have agreed to continue supporting Red Bull Power Trains in Formula 1 through HRC, following Red Bull’s request to extend our current agreement, which HRC can meet within its existing resources. Once again, we aim to use our involvement in the pinnacle of motorsport for the development of technologies and of our workforce.”

  • Hyundai’s heavy duty trucks to be exported to Germany

    Hyundai’s heavy duty trucks to be exported to Germany

    SEOUL: Hyundai Motor Company announced on Tuesday to export XCIENT Fuel Cell heavy-duty trucks to Germany, the biggest commercial vehicle market in Europe.

    Seven companies of Germany in logistics, manufacturing and retail will put 27 XCIENT Fuel Cell trucks into fleet service with funding for eco-friendly commercial vehicles from Germany’s Federal Ministry for Digital and Transport (BMDV). 

    READ MORE: Hyundai Motors announced 4% growth in July global sales

    Mark Freymueller, Senior Vice President and Head of Commercial Vehicle Business Innovation of Hyundai Motor Company said:

    “We are glad to now also officially enter the German commercial vehicle market with our heavy-duty fuel cell electric truck, the XCIENT Fuel Cell. Hyundai Motor, which is recognized as the leader in hydrogen fuel cell technology, will leverage this opportunity to expand our business into the wider European market by successfully supporting Germany’s efforts to achieve its carbon neutral goals,”

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

    In August 2021, BMDV rolled out its funding guidelines for commercial vehicles with alternative drive systems upon approval by the European Commission. The funding is available for battery, fuel cell and (overhead line) hybrid electric vehicles, corresponding to refueling/charging infrastructure and related feasibility studies. BMDV will have a budget of 1.6 billion euros available until 2024 to purchase eco-friendly commercial vehicles. 

    The aforementioned seven German companies initially applied for the funding with Hyundai’s XCIENT Fuel Cells and successfully received approval from BMDV, again proving XCIENT Fuel Cell’s product competitiveness. 

    READ MORE: Hyundai announces second quarter financial results

    Hyundai Hydrogen Mobility, a joint venture between Hyundai Motor Company and Swiss company H2 Energy, has also established Hyundai Hydrogen Mobility Germany GmbH (HHMG) to actively expand its entry into the hydrogen-powered commercial vehicle market in Germany. In order to establish a hydrogen ecosystem in the country, HHMG will operate local market sales and customer service as well as upfitter management in the market. HHMG also plans to actively participate in the second funding program.

    XCIENT Fuel Cell Specifications

    The XCIENT Fuel Cell to be delivered is equipped with a 180-kW hydrogen fuel cell system with two 90-kW fuel cell stacks. The system’s durability and the vehicle’s overall fuel efficiency are tailored to the demands of commercial fleet customers. The 350-kW e-motor with maximum torque of 2,237 Nm enables dynamic driving performance.

    READ MORE: Chevrolet unveils all-electric 2024 Blazer EV

    XCIENT Fuel Cell’s seven large hydrogen tanks offer a combined storage capacity of around 31 kg of fuel, while a 72-kWh-powered set of three batteries provides an additional source of power. The maximum driving range is 400 km per charge. Refueling a full tank of hydrogen takes about 8 to 20 minutes, depending on the ambient temperature. 

    Launched in 2020 by Hyundai Motor, XCIENT Fuel Cell is the world’s first mass-produced hydrogen electric heavy-duty truck. The company has already deployed 47 units in Switzerland where they have accumulated more than four million kilometers in driving as of July 2022. The trucks are servicing 23 different customers in Switzerland.

    READ MORE: Pakistan reintroduces capital value tax on motor vehicles

  • Hyundai Motors announced 4% growth in July global sales

    Hyundai Motors announced 4% growth in July global sales

    SEOUL: Hyundai Motor Company on Monday announced that its July 2022 global sales registered an increase of 4 per cent to 325,999 units.

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

    In markets outside of Korea, Hyundai Motor sold a total of 269,694 units, a 6.3 percent increase from a year earlier.

    Despite global component shortages and ongoing geopolitical issues, the sales in global markets have recovered steadily this year.

    READ MORE: Hyundai announces second quarter financial results

    Sales in Korea were down by 5.9 percent year-over-year to 56,305 units. However, the company maintained solid sales of SUV models and Genesis luxury brand vehicles, selling 15,371 units and 10,512 units, respectively.

    Amid fiercer competition in the global electric vehicle (EV) market, the company is solidifying its position as an EV leader. In July, Hyundai sold over 16,000 EVs on a retail sales basis, a 24 percent increase from a year earlier, with more than 8,000 units of IONIQ 5 leading the way.

    READ MORE: Chevrolet unveils all-electric 2024 Blazer EV

    In spite of unfavorable external conditions, including ongoing components shortages and cost fluctuations of raw materials, Hyundai will continue to alleviate business uncertainties by optimizing production and inventory status while diversifying business strategies tailored for each region.

    READ MORE: Pakistan reintroduces capital value tax on motor vehicles

  • New prices of Toyota Cars in Pakistan

    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.
  • Careem customers donate Rs10.3 million

    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.

  • Toyota Indus Motors announces plant shutdown

    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.

  • Pakistan decides to lift ban on imported goods

    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.

  • Super tax to hammer auto business in Pakistan: Honda Atlas

    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.