Car makers cut prices amid plant shutdowns

As Indus Motor Company Ltd (IMC) decreased prices by Rs100,000 to Rs1.310 million citing rupee appreciation, Pak Suzuki Motor Company Ltd (PSMCL) on Tuesday announced the suspension of car and motorbike production for a limited period. In a stock filing, PSMCL said its car plant would remain shut from Oct 25-27 and Oct 30-Nov 3. Similarly, its two-wheeler assembly would also be inoperative from Nov 1-3 due to a shortage of inventory. According to Topline Securities, Pak Suzuki announced a profit of Rs3.8bn (earnings per share of Rs46.24) in 3Q2023 versus a loss of Rs2.5bn (loss per share of Rs30.25) in 3Q2022. This takes the 9M2023 loss to Rs5.9bn (LPS: Rs71.34) as compared to a loss of Rs2.5bn (LPS: Rs30.46) in 9M2022. Sales stood at Rs29.9bn during the July-September quarter against Rs29.8bn in the same period last year, while sales plunged to Rs73bn in the first nine months of the current calendar year from Rs142bn in the same period last year. While keeping its plant closed from Oct 17-Nov 17 due to low inventory and parts shortage, Indus Motor slashed the price of the Toyota Yaris by Rs100,000-Rs120,000. Toyota Yaris GLI MT 1.3, ATIV MT 1.3, Gli CVT 1.3, ATIV CVT, Aero CVT 1.3, ATIV X MT 1.5, ATIV X CVT 1.5 and Aero CVT 1.5 now carry price tags of Rs4.399m, Rs4.689m, Rs4.659m, Rs4.899m, Rs5.099m, Rs5.309m, Rs5.649m and Rs5.849m as compared to Rs4.499m, Rs4.789m, Rs4.759m, Rs4.999m, Rs5.199m, Rs5.429m, Rs5.769m and Rs5.969m. After a price reduction of Rs1.1m to Rs1.310m, the new prices of Toyota Fortuner LO Petrol, High Petrol, Diesel, Legender and GRS are Rs14.499m, Rs16.999m, Rs17.999m, Rs18.999m and Rs19.999m versus Rs15.809m, Rs18.099m, Rs19.079m, Rs20.129m and Rs21.089m.