Sales of Toyota, Daihatsu jump by 99%

[Naveed Yaseen]

KARACHI: The Board of Directors of Indus Motor Company Ltd., met on October 28, 2009 to review the company’s financial and operating performance for the first quarter ended September 30, 2009.

The combined sales of Toyota and Daihatsu brands for the quarter recorded a jump of 99 percent to 10,631 units compared to 5,335 units sold for the same period last year.

Correspondingly, the production of PC and LCV for the quarter ended September 30, 2009 also increased by 83 percent to 10,576 units as against 5,785 units produced in the same period in 2008.

The mismatch of volumes between the two comparative quarters is due to the run out phase of the previous Toyota Corolla model in the corresponding quarter last year. On the financial side, increase in the company’s revenues and profit after tax for the quarter ended September 30, 2009 was from Rs 5.2 billion to Rs 10.9 billion and Rs 48 million to Rs 759 million respectively which is mainly due to the rise in sales volume.

Although the nationwide sales of locally assembled Passenger Cars (PC) and Light Commercial Vehicles (LCV) were up by 13 percent to 30,787 units as compared to 27,159 units sold for the same period last year, the company believes that the overall market remained sluggish and the operating environment was extremely testing.

The major share in volume increase in the 1300cc and above cars is mainly attributable to sales of the Toyota Corolla which were absent last year due to the previous model run out. Some other factors which prevented further sales decline are improvement in the economic situation on the back of IMF support, healthy farm income and the government’s decision to remove 5 percent Federal Excise Duty on cars above 850cc which allowed for a reduction in car prices.

Prior to the BOD meeting, IMC held its 20th Annual General Meeting for FY 08-09 in which the Company’s financial and operating performance for the year ended June 30, 2009 was reviewed.

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