Toyota Indus Motors at Crossroads of Ambiguity
Abstract/Description
This case study delves into the dilemma of Indus Motors Company Limited, also known as IMC or Toyota Indus (a subsidiary of Toyota Motor Corporation Japan in Pakistan), when the company faced an unprecedented issue of massive decline in sales, profitability, and earnings per share. According to their Annual Report for the year ended June 30, 2023, the company’s sales dropped by 58% overall, while the sales declined by 67% in the passenger car segment. Its net income dropped from PKR 275.5 billion (or US$ 961,605,585 as US$ 1 equaled to PKR 286.5 on June 30, 2023) in 2022 to PKR 77.7 billion (or US$ 271,204,188) in 2023 and earnings per share dropped from PKR 201 (or US$ 0.70) to PKR 123 (or US$ 0.43) in the same fiscal years. The operational capacity of their plant was reduced by half. Mr. Ali Asghar Jamali, the CEO and his team were deeply concerned with the issue of declining performance, which caused them to rethink their marketing strategy and corporate strategy.
This case study draws from the primary data through six interviews from industry experts, who were dealers of different brands and secondary data including the annual report of the company, its website, social media pages, industry data from authentic sources, and articles. The data is analyzed and interpreted by keeping in view the generally recognized methods of developing teaching case studies.
Track
Case
Session Number/Theme
Case Study Session
Start Date/Time
30-5-2024 2:00 PM
End Date/Time
30-5-2024 5:00 PM
Location
Faculty Lounge, Aman CED Building
Recommended Citation
Akhlaq, I., Qureshi, J., & Salem, S. (2024). Toyota Indus Motors at Crossroads of Ambiguity. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2024/program/53
COinS
Toyota Indus Motors at Crossroads of Ambiguity
Faculty Lounge, Aman CED Building
This case study delves into the dilemma of Indus Motors Company Limited, also known as IMC or Toyota Indus (a subsidiary of Toyota Motor Corporation Japan in Pakistan), when the company faced an unprecedented issue of massive decline in sales, profitability, and earnings per share. According to their Annual Report for the year ended June 30, 2023, the company’s sales dropped by 58% overall, while the sales declined by 67% in the passenger car segment. Its net income dropped from PKR 275.5 billion (or US$ 961,605,585 as US$ 1 equaled to PKR 286.5 on June 30, 2023) in 2022 to PKR 77.7 billion (or US$ 271,204,188) in 2023 and earnings per share dropped from PKR 201 (or US$ 0.70) to PKR 123 (or US$ 0.43) in the same fiscal years. The operational capacity of their plant was reduced by half. Mr. Ali Asghar Jamali, the CEO and his team were deeply concerned with the issue of declining performance, which caused them to rethink their marketing strategy and corporate strategy.
This case study draws from the primary data through six interviews from industry experts, who were dealers of different brands and secondary data including the annual report of the company, its website, social media pages, industry data from authentic sources, and articles. The data is analyzed and interpreted by keeping in view the generally recognized methods of developing teaching case studies.
