Toyota Pakistan aka Indus Motors Company (IMC) announced that it has suspended all car bookings throughout the country. The move takes place roughly a month after the car maker suspended car bookings to all Pakistani customers for two weeks.
The company has announced a temporary suspension of the bookings for all its individual-car models due to risks to the program from uncertain and unstable market conditions. Toyota Pakistan issued a notification to all dealerships directing them to suspend bookings of similar car models until further notice.
The unexpected situation came during a period of economic and political instability with the new coalition government being unable to perform because the situation He came to power in after he ousted a previous Prime Minister Imran Khan through a vote of co-confidence motion.
It is important to mention that the rupee of Pakistan (PKR) has reach to a historic low against the dollar this month. Today (Wednesday) local rupee has declined to Rupee 198.39 in the inter-bank market. This represents a downfall of rupees 2.65 from the previous day (Tuesday).
The Pakisatni Rupee (PKR) has depreciated by Rs. 14.3 since April 1, and it is expected to fall even further unless the IMF releases the next tranche of $1 billion. Furthermore, the stock market continues to crash, while inflation is at a record high.
The announcement by Toyota to suspend car reservations for all vehicles is anticipated as vehicle manufacturers import majority of the materials needed to assemble automobiles in Pakistan. The sustained downfall of the Pakistani Ruble versus the US dollar has pressured the automotive market, which is said to have led to this decision.
It is expected that other manufacturers will follow Toyota Pakistan in this decision with the suspension of their bookings in the coming days unless Pakistani rupees recovers against the USD and the stock market increases.
Toyota Pakistan (Indus Motors Company) maintains that it will continue to transport automobiles on schedule for customers already booked by them.