Car Sales Saw Unforeseen Growth in FY2021 Thanks to Hyundai, Changan, Kia and Toyota
Posted by WALEED SHAH
The Indus Motors Company (IMC) Limited has reported a volumetric growth of 102 percent on a year-over-year (YoY) basis, producing 57,236 units in the Fiscal Year (FY) 2020-21, compared to 28,378 units produced in FY 2019-20.
This was revealed during the Toyota IMC management meeting held on Tuesday to analyze the company’s financial results in the FY 2020-21 and to deliberate its future strategy.
In the fiscal year under discussion, the company marked earnings of Rs. 12.8 billion with the Earnings Per Share (EPS) at the rate of Rs. 163.2 in the fiscal year, compared to the earnings of Rs. 5.1 billion with the EPS at the rate of Rs. 64.7 in FY 2019-20, resulting in a YoY upward growth of 152 percent.
The details of vehicles that Toyota IMC produced in the year are as follows:
| Vehicles Produced During FY2021 | |
| Vehicles | No. of Units |
| Toyota Yaris | 28,295 |
| Toyota Corolla | 18,355 |
| Toyota Fortuner | 3,543 |
| Toyota Hilux | 7,043 |
This allowed the company to raise its topline by 108 percent on a YoY basis, allowing for a handsome revenue of Rs. 179 billion during FY2021.
It is worth mentioning here that the overall vehicle sales in Pakistan went up by 75 percent on a YoY basis to 250,602 units, compared to 143,320 units during FY 2019-20.
Toyota IMC stated that the growth was due in large part to the sales figures of Kia Lucky Motors, which went up by 171 percent on a YoY basis to 21,952 units. It added that Hyundai Nishat’s sales also went up by 1664 percent on a YoY to 5,826 units, which played a role in the increase in vehicle sales. Toyota IMC also contributed greatly to the increase, based on the figures mentioned above.
The following are the sales figures (as reported by Toyota IMC) observed on the part of all car companies during FY 2020-21:
| Automakers | Sales During FY2019-20 (CKDs and/or CBUs) | Sales During FY 2020-21 (CKDs and/or CBUs) | Percentage Change |
| Toyota | 28,837 | 57,731 | 100% |
| Honda | 16,396 | 29,314 | 78% |
| Suzuki | 65,891 | 88,062 | 34% |
| FAW | 3,438 | 1,232 | -64% |
| Kia | 8,100 | 21,112 | 161% |
| Master Changan | 691 | 6,542 | 847% |
| Hyundai | 334 | 5,826 | 1644% |
| Ghandhara Isuzu | 656 | 316 | -52% |
| MG | N/A | 3,838 | N/A |
| Proton | N/A | 436 | N/A |
| Audi | 609 | 412 | 32% |
| BMW | 59 | 64 | 8% |
| Mercedes Benz | 256 | 300 | 17% |
| Others | 7,518 | 14,161 | 88% |
Toyota IMC said there was no major chip shortage issue for them at the moment. “The company is currently operating on double shift to keep up the production with the rising demand of vehicles, and [it] will continue to do so for the foreseeable future.”
The company highlighted that, like other automakers, it is also facing high operational costs due to the recent depreciation of the Pakistani rupee against the US dollar, as well as the supply chain issues such as raw material shortage, cargo container shortage, and port staff shortage. Based on these issues, the company hinted that it is likely to increase the prices of its vehicles within a month.
Toyota IMC will also invest $100 million over the course of the next three years for the local assembly of hybrid vehicles. The company also plans to invest $30 million in the upgradation and extension of the existing plant, which would increase the company’s production capacity by 20%.
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