KARACHI: Indus Motor Company - the manufacturers of Toyota, Hilux and Fortuner - increased prices of its 1,700cc and above engine capacity vehicles by 10% with effect from Monday, according to a company notification sent to dealers.
“Yes, we have increased prices,” Indus Motor CEO Ali Asghar Jamali confirmed to The Express Tribune.
“We have passed on the impact of 10% FED (federal excise duty) the government has imposed through the Finance Supplementary (Second Amendment) Bill 2019 to cars of 1,700cc and above category,” he said.
“It is important to note that FED will be applicable to all new and balance order (including full and partial payment),” the company notification said.
“New RSP (retail selling price) will also be applicable to all government orders pending delivery with the company,” it said.
According to the new price list, Corolla Altis M/T (1.8 litres) is priced at Rs2.96 million, Corolla Altis A/T CVT-I (1.8 litres) at Rs3.10 million, Corolla Grande MT-SR (1.8 litres) at Rs3.15 million and Corolla Grande AT-SR CVT-I (1.8 litres) at Rs3.30 million.
Fortuner 4x4 – Sigma 4 (2.8 litres) diesel engine is priced at Rs7.52 million and Fortuner 4x2 (2.7 litres) petrol engine is priced at Rs7.04 million.
Any impact on prices due to changes in government levies, tariffs, fiscal policies, import policies, etc would be on account of customers, it said.
“Around 24% of Indus sales are in the 1,700cc and above category,” Topline Securities said in an earlier report. “However, Indus already has a 1,600cc variant for its top-of-the-line Toyota model, which it will likely market aggressively.”
Earlier, while presenting the economic reforms package, a 10% FED was imposed on 1,800cc and above vehicles, which was almost neutral for the auto sector as approximately 4% of the sector’s sales were in the 1,800cc and above engine category.
“However, now the 10% FED … will be negative for the sector,” the brokerage house said.
Jamali said the company had increased prices after a gap of five months. Last time, the prices were increased to pass on the impact of rupee depreciation against the dollar and other major currencies in October 2018.
Published in The Express Tribune, March 12th, 2019.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.