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Tag: Indus Motors

  • Some car assemblers, manufacturers may exit Pakistan

    Some car assemblers, manufacturers may exit Pakistan

    KARACHI: Some car assemblers/manufacturers may exit Pakistan market because the automotive industry is facing immense difficulties.

    Indus Motors in a management briefing informed that automobile sector faces unforeseen external challenges due to unprecedented rupee devaluation and import restrictions by SBP. “That said, some players may exit from the market,” according to Topline Securities quoted as saying.

    READ MORE: Pakistan car sales plunge 50% in 1QFY23

    Indus Motors (INDU) conducted its Corporate Briefing Session (CBS) today to discuss the first quarter of the current fiscal year financial results and company outlook.

    INDU is currently running at production capacity of 40-50 per cent due to SBP restrictions and management don’t see restriction to ease soon.

    At current production level, INDU’s order book is filled for next 3 months. The orders can be delivered in 4-5 weeks if restriction eases.

    READ MORE: Pakistan car sales plummet by 50% on import restriction

    Furthermore, floods wreaking havoc along with higher inflation and low purchasing power of consumers will have a negative impact on demand of the entire auto sector in upcoming periods.

    The auto financing is down from 35 per cent to just 10 per cent due to higher interest rates and reduction in financing tenure.

    Management informed that localization rate in value terms for Yaris and Corolla is 65 per cent after deduction of 39 per cent taxes and duties.

    READ MORE: Pakistan car sales drop 59% in July 2022

    With regards to recently announced refund policy, management informed that around 400-500 clients cancelled their booking and got their cash back along with interest amount.

    Investment plan of US$100mn for local production of HEV vehicles is on track; where company is expected to launch its variant by end of next year in 2023.

    Pakistan car sales down 51 per cent YoY to 47,178 units in 1QFY23 out of which INDU car sales clocked in at 8,994 units, down 52 per cent YoY. Used car imports clocked in at 1,039 units in 1QFY23.

    READ MORE: Pakistan car sales surge 54 per cent in FY22

    Net sales in 1QFY23 down 43 per cent to Rs37bn from Rs66bn in 1QFY22 due to lower production on account of limited imports allowed by SBP thereby forcing the company to observe regular shutdowns during the quarter. Similarly profit after tax also down by 76 per cent YoY to Rs1.3bn from Rs5.4bn primarily due to gross loss.

    INDU recorded gross loss of 6 per cent in 1QFY23 compared to gross profit of 11 per cent in 1QFY22 due to rupee devaluation against US dollar, increased freight charges and higher commodity prices. The management indicated the there would also be loss in 2QFY23 however the quantum would be lower compared to 1QFY23.

  • Indus Motors to increase car prices to pass cost impact

    Indus Motors to increase car prices to pass cost impact

    KARACHI: Indus Motors, the maker of Toyota cars in Pakistan, is likely to increase prices to pass on the cost impact to consumers.

    The company management said in corporate briefing session on Tuesday.

    READ MORE: PSMC offers free WagonR registration amid sales slump

    Regarding car prices, management informed that company has to increase price to pass cost impact to consumers as current car prices are not sustainable at exchange rate of over Rs230. They highlighted, current car prices are set at dollar rate of around Rs210-215, according to analysts at Topline Securities.

    The company conducted the briefing to discuss its FY22 financial results and company outlook.

    Company expect at-least 40 per cent decline in volumetric sales in FY23 amid higher car prices, hike in interest rates, strict auto financing rules, recent floods and restriction on Completely CKD imports.

    READ MORE: Toyota stops car production in Russia

    To note, INDU is currently running at production capacity of around 40 per cent-45 per cent, the analysts added.

    To note, at the current production level i.e. 40-45 per cent, INDU’s order book is filled for next 4 months. 

    Pakistan car sales increased by 51 per cent YoY to 379,350 units in FY22 out of which INDU car sales clocked in at 75,611 units, up 31 per cent YoY. Used car imports clocked in at 28,122 units in FY22, up from 21,239 units in FY21.

    READ MORE: Ferrari launches its first ever four-door car

    Management stated that higher FED and Sales Tax from Jan-2022 along with 1 per cent CVT on 1300cc+ from Jul-2022 and increase in Advance Income Tax has also led to higher vehicle prices.

    With regards to recently announced refund policy, management informed that around 800-1,000 clients cancelled their booking and got their cash back along with interest amount. 

    Investment plan of US$100 million for local production of HEV vehicles is on track; where company is expected to launch its variant next year in 2023.

    READ MORE: Ford unveils seventh generation of Mustang

    Net sales in FY22 increased by 54 per cent to Rs276 billion from Rs179 billion in FY21 while profit after tax only increased by 23 per cent YoY to Rs15.8 billion from Rs12.8 billion due to rupee devaluation against US dollar and imposition of super tax.

    Gross margins declined to 6.7 per cent in FY22 from 9.3 per cent in FY21 primarily on account of rupee devaluation against US dollar, increased freight charges and higher commodity prices.

    To note, these are lowest margins in last 10-Years. Management highlighted that gross margins will remain depressed in FY23.

  • Indus Motor halts production of Toyota vehicles in Pakistan

    Indus Motor halts production of Toyota vehicles in Pakistan

    KARACHI: Indus Motor Company Limited on Tuesday announced to temporary halt its production of Toyota vehicles in Pakistan.

    Indus Motor is the manufacturer of Toyota cars in Pakistan.

    “The company has decided to temporarily shut down its production plant from September 01 to 16, 2022,” the company said in a communication sent to the Pakistan Stock Exchange (PSX).

    READ MORE: Toyota Indus Motors announces plant shutdown

    “However, in case of any change in production plan due to approvals is being sought, the same will be communicated accordingly,” it added.

    Indus Motor said that the State Bank of Pakistan (SBP) had introduced a mechanism through Circular No. 09 of 2022 on May 20, 2022, for obtaining prior approval for import of CKD kits and components of passengers cars (HS Code 8703 category) for the auto sector.

    “The delay in aforesaid approvals has created hurdles in clearance of import consignments of the company, resulting in significant reduction in inventory levels and consequently, creating adverse impact on the supply chain and production activities,” it added.

    The company said that due to insufficient inventory levels to maintain production, the company has decided to temporarily halt its production activities.

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

    Previously on July 29, 2022 the company in another communication sent to PSX stated 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.

    “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.”

    READ MORE: Toyota lowers July production in Japan

    “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,” according to previous announcement.

    The company in a report 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: Indus Motors rebuts plant shutdown reports

    The company further added: “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.”

  • Toyota reduce prices of cars in Pakistan from August 16, 2022

    Toyota reduce prices of cars in Pakistan from August 16, 2022

    KARACHI: Toyota Motors has announced new reduced rates of its cars in Pakistan on Tuesday, which are applicable from August 16, 2022.

    According to Toyota Port Qasim Motors, the following are new ex-showroom Khi prices inclusive of current CVT plus Freight and Transit Insurance.

    Following are the new rates for all variants of Toyota Yaris:

    1. Toyota Yaris GLI MT 1.3L, the decreased price is Rs3,550,500.
    2. Toyota Yaris GLI CVT 1.3L, the decreased price is Rs3,780,500.
    3. Toyota Yaris ATIV MT 1.3L, the decreased price is Rs3,740,500.
    4. Toyota Yaris ATIV CVT 1.3L, the decreased price is Rs3,940,500.
    5. Toyota Yaris ATIV X MT 1.5L, the decreased price is Rs4,020,500.
    6. Toyota Yaris ATIV X CVT 1.5L, the decreased price is Rs4,270,500.

    READ MORE: Previous prices of Toyota Cars in Pakistan

    Following are new rates for all variants of Toyota Corolla X:

    1. Toyota Corolla ALTIS MT 1.6L, the decreased price is Rs4,980,500.
    2. Toyota Corolla ALTIS AT 1.6L, the decreased price is Rs4,800,500.
    3. Toyota Corolla ALTIS AT 1.6L Special Edition, the decreased price is Rs5,290,500.
    4. Toyota Corolla ALTIS CVT 1.8L, the decreased price is 5,280,500.
    5. Toyota Corolla Grande CVT 1.8L (Beige interior), the decreased price is Rs5,720,500.
    6. Toyota Corolla Grande CVT 1.8L (Black interior), the decreased price is Rs5,760,500.

    Following are new rates of all variants of Toyota Fortuner:

    1. Toyota Fortuner G 4*2 AT 2.7LO (petrol), the decreased price is Rs11,590,500.
    2. Toyota Fortuner V4*4 AT 2.7L HI (petrol) New, the decreased price is Rs13,800,500.
    3. Toyota Fortuner SIGMA 4*4 2.8L (diesel), the decreased price is Rs13,982,500.
    4. Toyota Fortuner 4*4 Legender (2755cc diesel), the decreased price is Rs14,712,500.

    READ MORE: Toyota Indus Motors announces plant shutdown

    Following are new rates of all variants Toyota Hilux Double Cabin 4*4 (diesel):

    1. Toyota Hilux D/C STD, the decreased price is Rs8,462,500.
    2. Toyota Revo G MT, the decreased price is Rs9,182,500.
    3. Toyota Revo G AT, the decreased price is Rs9,622,500.
    4. Toyota Revo V AT, the decreased price is Rs10,612,500.
    5. Toyota Revo 4*4 Rocco (2755cc diesel), the decreased price is Rs11,192,500.

    Following are new rates of all variants Toyota Hilux Single Cabin:

    1. Toyota Hilux S/C Deckless, the decreased price is Rs5,171,500.
    2. Toyota Hilux S/C 4*2 STD, the decreased price is Rs5,571,500.
    3. Toyota Hilux S/C 4*4 STD, the decreased price is Rs7,351,500.

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

    Following are new rates of all variants of Toyota Cross Hybrid:

    1. Toyota Cross 1.8L Low, the decreased price is Rs11,188,000.
    2. Toyota Cross 1.8L Smart, the decreased price is Rs11,968,000.
    3. Toyota Cross 1.8L Premium, the decreased price is Rs12,258,000.
  • 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.
  • 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.

  • Toyota Indus Motors offers 100% refunds on booking cancellation

    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

  • Indus Motors rebuts plant shutdown reports

    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

  • Indus Motors estimates 15% sales dip on PKR fall

    Indus Motors estimates 15% sales dip on PKR fall

    KARACHI: Indus Motors Company Limited has estimated up to 15 per cent decline in car sales this year due to massive depreciation in Pakistan Rupee (PKR) value.

    In a corporate briefing on Thursday, the Indus Motors informed that this year’s sales volumes remained impressive however, the company anticipates demand to receive a hit during 2022/2023 as an outcome of elevated interest rates, stringent auto financing conditions together with bloated Current Account Deficit; which will further exert pressure on exchange rate.

    READ MORE: Pakistan’s car sales surge 56% in eight months of FY22

    “Due to aforementioned reasons, the management is estimating sales volumes to take a dip of around 10-15 per cent. As a response to this, the company is currently operating on lower volumes,” according to analyst at Arif Habib Limited.

    Management deemed upcoming year to be tough for automotive industry. It expects cost pressure to continue going forward, mainly on the back of 4 to 5 times increase in freight costs during the year together with elevated commodity prices, increased FED/sales tax and currency depreciation.

    READ MORE: Pakistan’s car sales surge 61% in 7MFY22

    Together with this, the management expects delay in shipments and material shortages to keep the sales volume and profitability subdued.

    Highlighting the company’s financial performance management mentioned that during first half of the current fiscal year, the company’s sales volume increased by 47 per cent YoY to 38,632 units as compared to 26,362 units in same period last year (SPLY).

    READ MORE: Pakistan’s car sales up monthly highest ahead price hike

    During 1HFY22, sales revenue surged by 70 per cent YoY to PKR 135.2bn as compared to PKR 79.6bn in SPLY amid higher volumetric growth whilst the profit after tax increased to PKR 10,175mn (EPS: PKR 129.45), up 112 per cent YoY from PKR 4,801mn (EPS: PKR 61.08) during SPLY. The growth in profitability is an outcome of higher CKD and CBU sales together with higher other income, given higher return on investments.

    On a sequential basis, company’s profitability took a dip as an outcome of rising input cost, given substantial currency devaluation, and surging commodity prices.

    READ MORE: New rates of FED on local, imported motor vehicles

    While responding to the Q&A session, the management highlighted that the decline in sales volume during the month of Feb’ 22 was due to; i) production halts given the plant was shut down for one week for maintenance work and, ii) underutilization of plant capacity amid fewer working days during the month.

    The management hinted price hike of around 11-12 per cent, but not until June 2022.

    The management highlighted that the current month’s orders are booked up till June 2022 and that booking orders are hovering in between 4-4.5 months.

  • Indus Motors posts 195% growth in net profit to Rs5.42bn

    Indus Motors posts 195% growth in net profit to Rs5.42bn

    KARACHI: Indus Motor Company Limited has reported a remarkable 195% increase in net profit, reaching Rs5.42 billion for the quarter ended September 30, 2021, compared to Rs1.84 billion during the same period last year.

    (more…)