Escalating global prices of raw materials: IMC CEO hints at increasing prices of vehicles

LAHORE: In the wake of escalating global prices of raw materials, Chief Executive Officer (CEO) of Indus Motor Company (IMC), Ali Asghar Jamali on Wednesday hinted at increasing prices of their vehicles.

“A heavy surge in the prices of raw materials including steel, copper, aluminum is being witnessed across the world; while the Pak rupee devaluation is putting immense pressure on OEMs,” Jamali said while talking to a select group of mediamen in Lahore on Wednesday.

Since March 2020, steel prices are up a staggering 215 percent. The prices of aluminum reached over $3000 per tonne this October while the price of copper touched over $10,000 per tonne in October 2021, Jamali said, adding: “The rupee’s erratic fluctuation remains a high concern as does the ensuing rising inflation and international commodity prices which will continue to be vital factors that have an impact on the future financials of the company.”

Talking about the increasing car prices, he said that it is difficult to hold prices as exchange rate, freight charges and raw material cost have increased substantially. “These factors affect the prices of cars and they are beyond the control of manufacturers,” he reasoned.

He disclosed that Toyota has recently invested over US 100 million dollars for the local production of Hybrid Electric Vehicle (HEV) in Pakistan.

“The investment is meant for the localization of components, plant expansion and production preparation for the first Hybrid Electric Vehicle,” Jamali said, adding: “To meet the increasing demand from our valued customers Indus Motor is striving to increase production capacity by further 20pc by April 2022. We recently had a ground breaking ceremony at our plant to expand IMV production. This will increase the IMV production over 22 percent.”

Appreciating the government’s policies to encourage low carbon mobility solutions contributing to the Prime Minister’s noble vision of a Clean and Green Pakistan, Jamali said, “We believe Strong Hybrids are a practical and sustainable solution for achieving mass electrification in Pakistan. Thus, we are thrilled to bring the most efficient 4th Generation Hybrid Electric Vehicle to our customers soon.”

Copyright Business Recorder, 2021