Corolla Cross hybrid vehicle: ‘IMC sets very high bar for competitors to match price, technology’
KARACHI: The entry of the local Toyota Corolla Cross hybrid electric vehicle (HEV) into Pakistan’s SUV market is posing a formidable challenge to competing brands. The Indus Motor Company (IMC) has leveraged its first-mover advantage and market leadership to maximum effect.
Equipped with a fuel-efficient 1.8L hybrid power train, the technology-laden Corolla Cross is priced between PKR 9.3-9.8 million - firmly within the sweet spot for the newly created SUV segment. The vehicle offers premium features like a 9-inch touch screen, 7 airbags, blind-spot monitoring, and Toyota’s latest safety aids.
Auto industry analyst Mashood Ali Khan said, IMC has set a very high bar for competitors to match in terms of price and technology.
Mashood says Toyota’s competitors must overhaul localisation plans to produce affordable hybrid models that can rival the Corolla Cross. The IMC already dominates Pakistan’s SUV landscape with the Fortuner and Revo, commanding a 45% segment share approximately.
Mashood Khan further said that localisation is the prime need of the hour to maintain affordable price to consumers and face the competition. OEMs, focusing strongly to localise more and more parts and sub components, will thrive to achieve sustainability in the market. With this aim and objectives, it is also possible to have access to foreign markets on competitive prices for exporting the products, he said.
Some analysts said Toyota could have priced the Corolla Cross even lower considering hybrid incentives under the new auto policy and 50% localisation. Import taxes on ICE vehicles are up to 50% versus under 20% for hybrids. However, the IMC has leveraged its first-mover advantage to maintain healthy margins.
Nonetheless, market watchers hope the entry of the Corolla Cross will trigger wider adoption of fuel-efficient hybrids in Pakistan. More options and stiffer competition should translate to more features and value for the customers.
Copyright Business Recorder, 2023
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