Toyota Corolla Price in Pakistan – Why Its Price Keeps Increasing?

The Toyota Corolla is one of the most popular and best-selling sedans in Pakistan. Known for its reliability, fuel efficiency, and resale value, it remains a top choice among car buyers. However, in recent years, the price of the Toyota Corolla has been rising steadily, making it more expensive for the average consumer.

In this blog, we will explore the key factors behind the continuous price hikes of the Toyota Corolla Price in Pakistan.

1. Rising Dollar Exchange Rate

One of the most significant reasons for the increase in Toyota Corolla prices is the fluctuation in the US dollar exchange rate. Since most automobile components are imported, a higher exchange rate directly impacts the cost of production.

• When the Pakistani rupee depreciates, the cost of imported raw materials such as steel, electronics, and engine components increases.

• Even though Toyota Pakistan assembles Corolla locally, many critical parts are still imported, leading to higher prices.

As long as the exchange rate remains unstable, Toyota Corolla prices are expected to rise further.

2. Increase in Taxes and Duties

The automobile industry in Pakistan is heavily affected by government tax policies, customs duties, and regulatory changes. Over the years, various tax revisions have led to price hikes in vehicles, including the Toyota Corolla.

• General Sales Tax (GST) Increase – The government has increased GST on cars from 17 percent to 18 percent, which directly affects the final price.

• Higher Customs Duties – The duty on imported auto parts has been revised multiple times, adding extra costs to the overall production.

• Federal Excise Duty (FED) – Additional taxes on cars above 1300cc have made larger Corolla variants even more expensive.

These taxation policies continue to play a major role in pushing Corolla prices higher.

3. Rising Cost of Raw Materials

The global increase in raw material costs has also impacted Toyota Corolla’s price in Pakistan. The cost of steel, aluminum, plastics, and rubber used in car manufacturing has increased due to global supply chain disruptions.

• Higher steel prices have directly affected the cost of vehicle frames and body parts.

• Shipping costs and logistics disruptions have made imported components more expensive.

Since these materials are essential for car production, any price increase in global markets leads to higher manufacturing costs, which are eventually passed on to consumers.

4. Inflation and Economic Instability

Pakistan’s economic conditions, including inflation and rising fuel prices, have led to a general increase in the cost of goods and services, including automobiles.

• Inflation impacts the cost of local manufacturing, labor, and transportation.

• Higher fuel prices lead to higher operational costs for automobile companies, which in turn increases car prices.

• High interest rates on auto loans make financing a car more expensive, reducing demand but not stopping price hikes.

With continued economic uncertainty, Toyota Corolla’s price is unlikely to stabilize in the near future.

5. High Demand and Strong Resale Value

Despite rising prices, the Toyota Corolla remains in high demand due to its durability, reliability, and resale value.

• Many buyers prefer Corolla because it has better resale value compared to other sedans.

• Limited local competition in the sedan segment keeps Corolla as one of the top choices.

• Toyota’s reputation for low maintenance costs and reliability makes it a preferred option, even at a higher price.

Since demand remains strong, Toyota does not need to lower prices to attract buyers, contributing to its steady price increase.

6. Government Policies and Auto Industry Regulations

The Pakistani government frequently introduces new automobile policies and import regulations, which directly affect car prices.

• Changes in import policies for Completely Knocked Down (CKD) kits make Toyota’s assembly process more expensive.

• Regulatory compliance costs, such as meeting safety and emission standards, add additional expenses to manufacturing.

• Government initiatives to promote electric vehicles (EVs) could further increase taxes on conventional fuel-based cars like Corolla.

These factors create long-term challenges that make Toyota Corolla more expensive over time.

Conclusion – Will Toyota Corolla Prices Keep Rising?

Given the current economic situation, taxation policies, rising raw material costs, and exchange rate fluctuations, it is likely that Toyota Corolla prices will continue to increase in Pakistan.

However, buyers looking to purchase a Toyota Corolla can still find ways to get a better deal by:

• Exploring bank financing options with lower interest rates

• Checking for dealership discounts and promotions

• Comparing different Corolla variants to find the best value for money

For now, potential buyers should stay updated on government policies