Toyota Pakistan’s announcement was not surprising, especially in view of the Pakistani rupee’s rapid depreciation against the US dollar. The dollar has decreased from Rs. 184 to Rs. 190 in the last four days, which is a significant drop for a currency.
Furthermore, due to the country’s political instability, there appears to be no relief for the rupee in the near future. The dollar began to fall on Sunday when Prime Minister Imran Khan dismissed parliament after the opposition presented him with a no-confidence resolution.
Since all vehicle companies import essential components, the exchange rate affects them directly. As a result, the rupee’s depreciation put pressure on the companies.
According to the experts, the dollar has decreased 15.36% from the start of the current fiscal year in July 2021. Until a new government is in place, the situation will remain volatile.
However, Toyota Pakistan is not the only company to do so. On April 4, Kia Lucky Motors suspended bookings for all Kia Picanto, Kia Sportage, and locally produced Kia Stonic models.
