In a statement issued from Indus Motor Company, it was stated that the retail prices of some Corolla variants will be increased by Rs 29,000, which translate into 2 percent increase only, while there will be no change in Altis price. Due to the unprecedented strengthening in the Yen which is at a 15-year high against major currencies, imported CKD and even local vendor parts have become more costly.
This is because most of the raw materials of vendors are also imported. Indus Motor Company, which has been absorbing most of the costs, is forced to marginally increase its car prices with immediate effect. Since January 2010, the Pakistani Rupee has depreciated by 15 percent against Yen (from 0.928 to 1.066) while the local price of the product has increased by around 6 percent. In addition, there have been increases in labour wages and utility prices. All these factors have forced the local OEMs to marginally increase car prices while absorbing most of the costs.
Further, the prolonged load shedding is not only increasing costs but is also playing havoc with the production cycle and forecasting process, which in turn is increasing pressure on an industry already suffering from multiple challenges.-PR