Indus Motors Fears 40pc Drop In Sales

Web Desk — Indus Motor Company (IMC) is operating at 40-45 percent production capacity despite having orders for the next four months.

The assembler of Toyota vehicles predicted at least a 40pc decline in volumetric sales in FY23 due to higher car prices, a hike in interest rates, strict auto financing rules, recent floods, and restrictions on CKD imports.

According to Topline Securities IMC Pakistan car sales increased by 51pc year-on-year to 379,350 units in FY22 out of which Indus car sales clocked in at 75,611 units, up 31pc.

The IMC management, with regards to the recent refund policy, informed the analysts that around 800-1,000 clients have canceled their bookings and got their cash back with markup.

According to the annual report, advances and loans from customers and dealers soared to Rs112bn in FY22 from Rs51bn in FY21.

Net sales increased by 54pc to Rs276bn from Rs179bn in FY21 while profit after tax only increased by 23pc to Rs15.8bn from Rs12.8bn due to rupee devaluation and imposition of super tax.