Toyota has halted all car bookings in Pakistan. The news is shocking, but not unexpected. KIA Lucky Motors recently halted bookings for all of its locally manufactured vehicles. Toyota has now done the same, further limiting consumer options.
Bookings have been halted until further notice, according to the company. The company is blaming the inability to take bookings for its cars in uncertain and volatile market conditions. What the company says could be true in some ways.
In recent days, the rupee has depreciated further against the US dollar. Steel prices have risen significantly, as have the freight charges required to import the steel.
Why has Toyota ceased accepting new bookings?
No automaker in their right mind would stop accepting new orders. So, why has Toyota taken such drastic measures?
You may recall that we recently blogged about the Karachi Consumer Court decision in which MG was penalized for delivering one of its vehicles late.
While it is true that the cost of auto manufacturing has risen, we believe that the real reason for Toyota’s latest announcement is that they do not want to bite off more than they can chew and be penalized by a court.
What Can We Expect Next?
In recent years, car companies and dealers have made it a practice to accept more orders than they can deliver on time. As a result, car deliveries are delayed.
Do you believe Toyota did this in response to the MG fine? Do you believe other local automakers will follow suit? Write your thoughts in comment section below.