Toyota Indus Motor Company (IMC)

Toyota profit tops Rs. 15 bn despite 90% quarterly drop

August 30, 2022 by Muhammad Sohaib Firdous

The financial results of Toyota Indus Motor Company (IMC) for the fiscal year that concluded on June 30, 2022, have been released.
Net sales revenue for the company was Rs. 275.50 billion, up 54% from Rs. 179.16 billion the previous year.
The company’s earnings per share climbed to Rs. 201.04 from Rs. 163.21.

The financial results of Toyota Indus Motor Company (IMC) for the fiscal year that concluded on June 30, 2022, have been released.

The Indus Motor Company Ltd. (IMC) Board of Directors gathered on August 30, 2022, to discuss the Company’s operations and financial results for the fiscal year that ended on June 30, 2021.

In comparison to a profit of Rs. 12.82 billion during the same period previous year, the company’s profit for the year was Rs. 15.80 billion, up 23.24 percent.

The company also disclosed a cash dividend of Rs. 3.25 per share along with the results.

The earnings during the most recent quarter, however, took a severe hit, declining by 90% QoQ and 88% YoY.

Lower gross margins and higher taxes as a result of the super tax’s implementation were the main causes of the profit’s drastic decline.

Indus Motors reported a 4QFY22 effective taxes of 88%, illustrating the significant impact of super tax on the business.

Net sales revenue for the company was Rs. 275.50 billion, up 54% from Rs. 179.16 billion the previous year. Sales rose as a result of repeated price hikes throughout the year and an increase in volumetric sales (Corolla and Yaris up 30%, Fortuner and Hilux up 70%).

The cost of sales increased significantly by 58.22 percent. In comparison to Rs. 162 billion, it was reported at Rs. 257 billion.

Gross margins rapidly decreased from 9.3 percent in FY21 to 6.68 percent in FY22 as a result of increased inflation, sharp increases in the cost of imported raw materials (particularly steel), and currency devaluation.

Due to a bigger cash balance from more orders received, the company’s other income climbed by 132% to Rs. 12.93 billion during the year as opposed to Rs. 5.79 billion.

The company’s earnings per share climbed to Rs. 201.04 from Rs. 163.21.

The share price of INDU at the stock exchange ended Tuesday at Rs. 991.43, down Rs. 28.66 or 2.88 percent, with a turnover of 10,179 shares.

Cuts to Production

Due to production halts, Toyota IMC’s earnings are projected to drop during the next few days.

According to a recent notice, the company will cease production and assembly operations between September 1 and 14, 2022, as a result of a new system requiring State Bank of Pakistan approval for CKD imports (SBP).

The company claims that this has made importing knockdown kits difficult and resulted in inventory issues for them.

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Kia Sportage and competitors’ 2021 vs 2022 price comparison

August 23, 2022 by Muhammad Sohaib Firdous

Kia Sportage has long been a top performer in its market.
Industry experts predict that sales will continue to drop in the future.
This is happening as a result of catastrophic inflation and a production halt.

The recent price reductions followed by the most recent price hikes have changed the face of the Pakistani auto sector.

Particularly C-segment crossovers have seen a sharp price increase and have evolved into specialist goods.

The Kia Sportage has long been a top performer in its market, with affordability being one of its defining characteristics. It is now far away from the inexpensive crossover it once was, which also applies to its rivals.

The price increases for Sportage and its rivals since August 2021 (or the time of debut) are as follows:

Note that only Pakistani compact crossover SUVs are included in this comparison.

Variants	Price in August 2021 (Rs.)	Prices in August 2022 (Rs.)	Increase (Rs.)
Kia Sportage
Alpha	4,294,000	6,250,000	1,956,000
FWD	4,782,000	6,750,000	1,968,000
AWD	5,270,000	7,250,000	1,980,000
Hyundai Tucson
GLS Sport FWD	4,979,000	6,899,000	1,920,000
Ultimate AWD	5,469,000	7,399,000	1,930,000
Proton X70
Executive AWD	4,590,000	6,740,000	2,150,000
Premium FWD	4,890,000	7,190,000	2,300,000
DFSK Glory 580
1.5T CVT	4,229,000	5,610,000	1,381,000
1.8 CVT	4,379,000	5,806,000	1,427,000
Pro CVT	4,610,000	6,100,000	1,490,000
Haval Jolion
1.5T FWD	5,725,000	6,020,000	295,000
MG HS
Trophy Edition	5,749,000	8,499,000	2,750,000
PHEV	7,899,000	8,900,000	1,001,000
Haval H6
1.5T FWD	6,495,000	7,425,000	930,000
2.0T AWD	7,499,000 (Launch Price)	8,499,000	1,000,000
Toyota Corolla Cross
Base Grade	7,689,000	12,249,000	4,560,000
Mid Grade	8,199,000	13,099,000	4,900,000
High Grade	8,399,000	13,419,000	5,020,000

Widespread Problem

As a result of a delay in the letter of credit (LC) approval for the CKD imports, HACL, Toyota Indus Motor Company (IMC), Pak Suzuki Motor Company (PSMC), and Kia Lucky Motor Corporation (KLMC) announced non-production days earlier this month.

Additionally, the most recent information from the Pakistan Automotive Manufacturers’ Association (PAMA) revealed a sharp fall in sales in July 2022.

PSMC, IMC, and HACL had a sharp decline in sales last month, while Hyundai Nishat Motor Company Limited (HNMPL) failed to sell even one Elantra or Sonata.

Due to catastrophic inflation, price increases, and recurrent production halts, industry experts predict that sales will continue to drop in the future.

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Haval H6 price cuts; upto Rs. 300,000

August 22, 2022 by Muhammad Sohaib Firdous

Sazgar Engineering has lowered the pricing of the Haval H6 in line with other automakers.
The company recently raised its price by an unexpected Rs. 1.3 million.
Haval H6 now faces competition that is even tougher than before.

Sazgar Engineering Works Limited (SEWL) has lowered the pricing of the Haval H6 in line with Toyota Indus Motor Company (IMC), Honda Atlas Cars Limited (HACL), Pak Suzuki Motor Company (PSMC), and other automakers.

The company recently raised its price by an unexpected Rs. 1.3 million in response to the US Dollar (USD) rate increase.

The company has reported a modest decrease in the price of H6 due to the easing of import restrictions and depreciation of the USD rate.

As of August 19, the following pricing is in effect:

Models	Old Price (Rs.)	Revised Price (Rs.)	Decrease (Rs.)
Haval H6 1.5 FWD	7,599,000	7,425,000	174,000
Haval H6 2.0 AWD	8,799,000	8,499,000	300,000

Due to its distinctive dimensions, the Haval H6 competes with both medium and compact SUVs.

Its primary rivals are the DFSK Glory 580 Pro, MG HS, Changan Oshan X7, Chery Tiggo 8 Pro, and Changan Oshan X7.

The base model has a 1.5-liter turbocharged 4-cylinder engine that generates 147 horsepower and 220 Nm of torque.

A 7-speed DCT automated transmission drives the front wheels. A comparable gearbox connects the top model’s 2.0-liter turbocharged 4-cylinder engine, which produces 224 horsepower and 385 pound-feet of torque, to all four wheels.

Although the recent price reduction did not bring the H6 on pace with its rivals, it did make the SUV a little more desirable.

Primarily because, despite its lack of practicality, the H6 outperforms its rivals in terms of performance, notably the 2.0 AWD model.

However, considering the current fuel prices, few individuals will favor large gas guzzlers. Given these elements, H6 now faces competition that is even tougher than before.

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Pak Suzuki slash car prices

August 16, 2022 by Muhammad Sohaib Firdous

Pak Suzuki Motor Company (PSMC) has announced a price decrease for its vehicles.
The company previously raised pricing dramatically, making its vehicles unaffordable.
Although the corporation has announced a little price reduction, the prices are still substantially higher than they were before.

The Pak Suzuki Motor Company (PSMC) recently announced a price decrease, continuing the much-appreciated wave of car price reductions.

Toyota Indus Motor Company (IMC) has lowered the prices of its automobiles as a result of a decline in the US Dollar exchange rate (USD) since June 29, and PSMC has just done the same.

The following are the new prices, which take effect right away:

Variants	Old Price (Rs.)	New Prices (Rs.)	Increase (Rs.)
Alto
Alto VX	1,789,000	1,699,000	90,000
Alto VXR	2,079,000	1,976,000	103,000
Alto VXL	2,399,000	2,223,000	116,000
Wagon R
Wagon R VXR	2,549,000	2,421,000	128,000
Wagon R VXL	2,699,000	2,564,000	135,000
Wagon R AGS	2,949,000	2,802,000	147,000
Cultus
Cultus VXR	2,879,000	2,754,000	125,000
Cultus VXL	3,164,000	3,024,000	135,000
Cultus AGS	3,379,000	3,234,000	145,000
Swift
Swift GL M/T	3,349,000	3,180,000	169,000
Swift GL CVT	3,599,000	3,420,000	179,000
Swift GLX CVT	3,959,000	3,760,000	199,000
Bolan/Ravi
Ravi	1,499,000	1,349,000	75,000
Bolan VX	1,579,000	1,500,000	79,000
Bolan Cargo	1,566,000	1,487,000	79,000

It is important to note that PSMC has raised pricing dramatically, making its vehicles unaffordable for the majority of buyers.

Although the corporation has announced a little price reduction, the prices are still substantially higher than they were before the most recent price increases. Nevertheless, it is a positive move that will probably inspire additional automakers to do the same.

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Hyundai sedan sales plunge to zero

August 12, 2022 by Muhammad Sohaib Firdous

Sales at Hyundai Nishat Motors Private Limited (HNMPL) fell by 89 percent MoM to 213 units.
Hyundai was unable to sell even one unit of the Elantra or Sonata.
Due to debilitating inflation, price increases, and significant delivery delays, all automakers anticipate a sharp fall in demand.

Due to production cuts by major automakers, unprecedented inflation, and high taxes, vehicle sales fell precipitously in July 2022.

According to the most recent figures from the Pakistan Automotive Manufacturers Association (PAMA), automakers (PAMA members only) sold 11,837 vehicles in total last month, a staggering 58 percent reduction month over month (MoM).

2,408 vehicles were sold by Toyota Indus Motor Company (IMC), a 62 percent MoM reduction in sales. While Pak Suzuki Motor Company (PSMC) sold 6,679 automobiles with a 58 percent increase in sales, Honda Atlas Cars Limited (HACL) performed relatively better by selling 2,537 cars with a 37 percent MoM decline.

Sales at Hyundai Nishat Motors Private Limited (HNMPL) fell by 89 percent MoM to 213 units. Hyundai was unable to sell even one unit of the Elantra or Sonata, therefore they continued to be the worst-selling vehicles.

The following list includes several well-known cars’ monthly sales:

Passenger Vehicle Sales
Passenger Vehicles	Units Sold in June 2022	Units Sold in July 2022	Month on Month %age Difference
PSMC
Cultus	2,468	661	-73%
Alto	7,487	4,618	-38%
Wagon R	2,134	282	-87%
Bolan	1,216	353	-71%
Swift	1,676	321	-81%
Toyota IMC
Corolla	2,626	1,087	-59%
Yaris	1,827	647	-65%
Fortuner	702	347	-51%
Hilux	1,154	294	-75%
Honda Atlas
Civic	657	422	-36%
City	2,764	1,986	-28%
BR-V	482	129	-73%
Hyundai Nishat
Tucson	897	104	-88%
Elantra	490	0	-100%
Sonata	201	0	-100%

Automobile manufacturers and experts anticipated a decline in sales as a result of price increases, citing growing transportation costs, raw material costs, fuel costs, and the depreciation of local currencies.

According to some experts, sales will continue to grow through September 2022. However, manufacturers’ observance of non-production days is what caused the early decline (NPDs). Due to debilitating inflation, price increases, and significant delivery delays, all automakers anticipate a sharp fall in demand in the coming days.

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Cuts to Production

Widespread Problem

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