The company has announced the suspension of bookings on all models in Pakistan due to uncertain and volatile market conditions in the country. The hold on orders is seen due to the rapid devaluation of Pakistan’s currency against the US dollar.
Moreover, the current political situation in the country has also led to further depreciation of the currency especially after Prime Minister Imran Khan dismissed parliament as a result of the no-confidence resolution presented by the opposition. The recent exchange rate of USD to PKR has increased up to Rs. 190 highlighting a significant drop in the country’s currency.
— PakWheels.com (@PakWheels) April 7, 2022
Furthermore, the automotive industry along with other industries is suffering largely due to this political turmoil in the country. Toyota motors Pakistan is also affected directly in terms of production cost and import duties on raw materials. This mounts great pressure on the company to keep up the standards of manufacturing with huge inflation and economic recession in the country. Similarly, Kia Lucky Motors has also suspended bookings for all variants of Kia Picanto, Kia Sportage, and locally produced Kia Stonic units.
Additionally, COVID-19 Pandemic has also caused a huge increase in the cost of production and delivery of vehicles around the globe. Japan and the US in the global automotive industries have also faced a shortage of microchips, resulting in the cessation of car production. As a result, the industries find it difficult to operate as the costs of shipment and raw materials have skyrocketed over the past two years.
Read more: Kia suspends booking of cars in Pakistan
Conclusively, the global shortage of semiconductor chips has furthered the economic recession of electronic vehicles and automobiles. Likely, the current situation of the country is also one of the major factors for the suspension of bookings of all Toyota models in Pakistan. If political instability prevails in the country other companies would also follow to reduce market accessibility and this would lead to further chaos and disruption in the local auto industry and market.