Citing Rupee depreciation as a reason, Toyota Pakistan has raised the prices of their vehicles in the country.
Ignoring the recent report by the Competition Commission of Pakistan (CCP), the company has increased the prices of the vehicles up to Rs. 175,000 for November and December deliveries and up to Rs, 350,000 for January 2019 onwards deliveries.
The report categorically explained that auto manufacturers are not abiding by the international standards of business where they are bound to take risk regarding currency fluctuation when a booking has been made, irrespective of full advance or partial payment.
If you have booked a vehicle with Toyota, following are the new raised prices.
The Toyota Pakistan customers who had made the partial payment, and getting cars delivery in Oct, Nov 2018, have to pay 50% of raised Retail Sale Price (RSP), while those who have made full payment at the booking time are exempted from this increase of prices. However, for the December bookings, 50% of the new RSP will be applied to both partial and full payment.
In Pakistan, the three major auto manufacturers hedge against rupee depreciation while transferring the burden to the consumers. This all happens because of their monopoly in the auto sector as there is no competition in the market.
Fortunately, the country is soon going to witness some new manufacturers entering in the auto industry. United Motors has introduced its 800cc United Bravo while Changan Motors have also launched their vehicles in the market. Moreover, Hyundai, Renault, and Datsun are also going to launch their cars somewhere in 2019 or 2020.
Now the government must ban auto manufacturers from conducting shady businesses in Pakistan and force them to comply with the international rules of business.