“AN ERA OF ESTEEM”

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Indus Motor Company Ltd.
 Our vision

To be the most respected and successful

enterprise, delighting customers with a wide

range of products and solutions in the

automobile industry with the best people and the

best technology.

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Indus Motor Company Ltd.
TOYODA LOOMS: It all started back in 1926 when Mr. Sakichi Toyoda founded

this corporation as one of the leading company in Japan as TOYODA

AUTOMATIC LOOM WORKS Ltd. Mr. Sakichi Toyoda was born in 1867 and up

till 1900, he became one of the very well known industrialists. Than in September

1933 Automobile department was established within TOYODA AUTOMATIC

LOOM WORKS and in September 1934, this automobile department of the

company manufactured its first Type A engine and based on this engine first

prototype MODEL A1 passenger car was completed.

TOYOTA Motors Corporation: Then in August 1937 TOYODA separated its

automobile department as another company named TOYOTA MOTORS

COMPANY Ltd. I must mention here that Mr. Kiichiro Toyoda, son of Mr. Sakichi

Toyoda, established TOYOTA motor company. Within the 10th year of its

establishment, TOYOTA started production of Model AA passenger car. During

1956, TOYOTA entered industrial vehicle field by marketing its one of the very

popular Model LA forklift. As the company is now in its 66th year its has been a

smooth journey of ideal management. In 1950 the company faced its one and

only strike that was controlled easily. In late 1950s, production system of the

company was improved that is considered one of the most effective production

systems during those times.

Expansion: In late 1970s, TOYOTA motors established TOYOTA metal Co. It is

TOYOTA’s own recycling plant. In 1975, TOYOTA entered prefabricated housing

industry by starting operations at kinuura plant. These activities are continued

and managed by TOYOTA at a regular pace.

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Indus Motor Company Ltd.
It must be worth mentioning here that TOYOTA has produced its 100,000,000th

domestic vehicle of Japan in October 1999.

Over and above manufacturing, TOYOTA also has a global network of ‘design’

and ‘Research and Development’ facilities, embracing the three major car

markets of Japan, North America and Europe.

Variety: When it comes to talks of producing a wide variety, TOYOTA has its

name on top. TOYOTA is producing a range of automobiles ranging from a high-

speed sports car like SUPRA to a grand luxury saloon like LEXUS. COROLLA is

one of the most popular brands of TOYOTA in different countries of world.

Globalization: Production of vehicles outside Japan began in 1959 at a small

place in Brazil and continued with a growing network of overseas plants.

TOYOTA believes in localizing its operations to provide customers with the

product they need where they need them; this philosophy builds mutually

beneficial long-term relationship with local suppliers and local labors and off

course customers. Global TOYOTA is a dream and mission of TOYOTA Motor

Corporation. Since its beginning TOYOTA has planned to be a world wide

automobile company and for this very reason TOYOTA has established a

network of production in many countries of world. At the time TOYOTA is

producing vehicles in 118 countries of world; one of the largest manufacturing

network in automobile industry. It took a long time to reach at this mark and the

process has been done step by step. Here is some information regarding start of

manufacturing activity of TOYOTA in some important countries:

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Indus Motor Company Ltd.
Name of Country Year of start of production
Taiwan 1949
Taiwan 1959
South Africa 1961
New Zealand 1966
Indonesia 1970
France 1971
Australia 1977
United States 1984
Germany 1988

These are some of the highlights of start of TOYOTA manufacturing in different

countries. It will need dozens of pages to give you details of this activity.

TOYOTA is the world’s third largest manufacturer of automobiles in unit sales

and net sales. It is by far the largest Japanese automotive manufacturer,

producing more than 5.5 million vehicles per year, equivalent to one every six

seconds. In the time it has taken you to read this paragraph, TOYOTA will have

produced at least another three or four cars!

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Indus Motor Company Ltd.
TOYOTA IN PAKISTAN

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Indus Motor Company Ltd.
 WELCOME TO

INDUS MOTOR COMPANY Ltd.

Our Core Values

Product Quality

Customer Satisfaction

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Indus Motor Company Ltd.
 Team Work

Employee Care

Ethical & Honest Practices

In Pakistan TOYOTA has started its manufacturing activity in July 01, 1990 with

the name of Indus Motor Company Ltd. Indus Motor Company Ltd. Is a joint

venture between the ‘House of Habib’, ‘TOYOTA Motor Corporation Japan

(TMC)’, and ‘TOYOTA Tsusho Corporation Japan’ for assembling, progressive

manufacturing and marketing of TOYOTA vehicles in Pakistan. Indus Motor

Company Ltd. Is engaged in sole dealership of TOYOTA and Daihatsu Motor

Company Ltd. Vehicles in Pakistan through its dealership network.

Incorporation: The Company was incorporated in Pakistan as a public limited

company in December 1989 and started commercial production in May 1993. In

addition, since than it has become the largest manufacturer of cars in Pakistan.

The shares of company are quoted on the stock exchanges of Pakistan. Toyota

Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the

company equity. The majority shareholder is the House of Habib with 50 % of the

equity.

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Indus Motor Company Ltd.
Plant: Indus Motor Company Ltd.'s production facilities are located at Port Bin

Qasim Industrial Zone near Karachi in an area measuring over 105 acres. It must

be worth mentioning here that Indus Motor Company’s plant here in Karachi is

the only manufacturing site in the world where both Toyota and Daihatsu brands

are being manufactured.

Heavy investment was made to build its production facilities based on state of art

technologies. World-renowned Toyota Production Systems are implemented to

ensure highest level of productivity.

Company Information: Indus Motor Company Ltd. is operating in Pakistan

under the guidance of TOYOTA motor corporation Japan. Here is some

information about management of company.

Board of Directors

Mr. Ali S. Habib Chairman

Executive Directors

Mr. Yutaka Arae Vice Chairman

Mr. M. Allays Sure

Non-Executive Directors

Mr. Farhad Zulfiqar

Mr. A. Okabe

Mr. K. Furubayashi

Mr. Muhammad Ali R. Habib

Chief Executive Officer

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Indus Motor Company Ltd.
 Mr. Mazhar Valjee

Company Secretary

Mr. Qasim Pervaiz

Audit Committee Member

Mr. Muhammad Ali R. Habib

Mr. Farhad Zulfiqar/Mr. Kersi Kapadia (Alternative)

Mr. K Furubayashi/ Mr. M Takeda (Alternative)

Environmental Policy: Environment is a major concern of TOYOTA and Indus

Motor Company Ltd. And that is why Indus Motor Company Ltd. Have defined an

environmental policy and is strictly following that. As stated by Indus Motor

Company Ltd.

WE AS A TEAM INDUS MOTOR ARE COMMITTED TO CONTINUOUSLY

IMPROVE OUR ENVIRONMENTAL MANAGEMENT SYSTEM TO:

• IDENTIFY AND AVOID/MITIGATE THOSE ENVIRONMENTAL ASPECTS

WHICH HAVE NEGATIVE ENVIRONMENTAL IMPACTS.

• COMPLY WITH ALL APPLICABLE LEGAL, REGULATORY AND OTHER

REQUIREMENTS.

• ASSIST SOCIETY BY MAKING THE ENVIRONMENT FRIENDLIER.

Environment is primary issue when determining the policies of TOYOTA and

related, that is the reason for defining an environmental policy that is very

directive and pointed to the main aim. TOYOTA executive summarize this

environmental policy in one sentence as

“Safer and Cleaner Environment for All”

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Indus Motor Company Ltd.
Indus Motor Company Ltd. Is the first passenger car manufacturer in Pakistan

automobile industry to acquire ISO 14001 which in itself shows Indus Motor

Company Ltd.’s commitment and concern establishment of an effective

management system? Another achievement of Indus Motor Company Ltd. in

regards of environment was the changing over of all hot water generators and

ovens to natural gas. This was another initiative that Indus took towards

reduction of pollution.

The All New

COROLLA 2003

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Indus Motor Company Ltd.
Break into Style

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Indus Motor Company Ltd.
 Trend

Setters

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Indus Motor Company Ltd.
 New COROLLA

Debut!

Enjoy the Excellence of Z-Generation!

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Indus Motor Company Ltd.
”It took us seven years to plan its design, its style, its launch and every thing”

says Mr. Asif Aleem of Indus Motor Company Ltd. Regional office at Islamabad.

After a long period of 9 years, TOYOTA decided to change its model in Pakistan.

For this they started planning since 1997. Actually back in 1997, TOYOTA

launched a model of COROLLA, with round lights and it was small in size too, in

15 countries. TOYOTA Indus Motor Company Ltd. Was also gave the option of

getting this model for production but Indus Motor Company Ltd. Refused. “The

image of COROLLA in Pakistan is of a big, heavy, comfortable and a luxury car

and we did not want to disturb it by introducing a small and sports looking

COROLLA” says Mr. Asif Aleem. COROLLA is a status symbol in Pakistan and

for this reason Indus Motor Company Ltd. Opted for the model of COROLLA to

be launched in year 2002. Simultaneously in Japan research was going on for

this model and after a four year research TOYOTA Motor Corporation Japan

produced its first prototype of the car. Then TOYOTA Japan invited all its

progressive customers for survey and in 2001 TOYOTA Motor Corporation Japan

started production of COROLLA S model.

Launch in Pakistan: Here in Pakistan Indus Motor Company Ltd. has planned

three years for the launch of new car. During the past 9 years, Indus Motor

Company Ltd. has introduced many innovations in COROLLA but the shape and

design was same.

On March 2, 2002, the company launched New TOYOTA COROLLA in Pakistan

in a ceremony held in Karachi. Initially COROLLA is launched in six different

categories

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Indus Motor Company Ltd.
COROLLA XLI 1.3 EFI

COROLLA GLI 1.3 EFI

COROLLA SE Saloon 1.6 EFI Manual

COROLLA SE Saloon 1.6 EFI Auto

COROLLA 2.0D

COROLLA 2.0D Saloon

Apart from Karachi it was launched in all the country at COROLLA dealer’s outlet

and almost every dealer held ceremonies at this occasion. “We arranged a fifteen

day festival at our showroom and kept open till late hours during the first fifteen

days” says Ms. Lubna N. Malik sales executive of Rawal Motors Rawalpindi.

TOYOTA Multan Motors Multan’s official says, “We have never seen such a rush

of people at TOYOTA and the important thing is that, whoever is coming to visit

our showroom, he or she is going back satisfied and majority of the visitors are

buyers”. Many of the dealers are providing test drive to their visitors.

Jump Start: Since its launch in 2002 the new COROLLA has achieved a

tremendous response and is all set to achieve No. 1 market share in its class.

Indus Motor Company Ltd. Management being conscious of the strong desire of

the customers to own and drive the new COROLLA has responded by enhancing

production of the New COROLLA by 35%.

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Indus Motor Company Ltd.
 MARKET OVERVIEW
Since its start back in 1990, Indus Motor Company Ltd. has enjoyed the status of

leader because the name it is reproducing is of TOYOTA. Market of automobile

in Pakistan is well established and it clearly states the self-actualization need of

Pakistani consumers. Before Indus Motor Company Ltd.’s launch TOYOTA has a

well-built network of sales that was overtaken by Indus Motor Company Ltd.

Pakistani automobile market consist of Manufacturer like Indus Motor Company

Ltd. Honda Atlas Motors and Pak Suzuki Motors and Importer that are wide

spread in country in shape of dealers. To lead in this environment Indus Motor

Company Ltd. has extended its product line of COROLLA to six and is operating

a product mix of three categories.

Our most target markets are upper middle class, upper class, upper class,

government and resellers. They are executives, managers, businessmen,

landlords, politicians, dealers, government offices and armed forces. Here are

some details of market segments:

Government offices: Pakistani government is an important customer that is

known for their bulk purchase. Although government purchase almost all the

brands present in Pakistani automobiles but its attention towards Indus Motor

Company Ltd. has caused us to give special attendance to the government.

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Indus Motor Company Ltd.
Armed Forces: Pakistani army has set a tradition of giving a TOYOTA vehicle to

its officers who cross the rank of Colonel. Before the launch of new COROLLA,

TOYOTA CORONA has served Pakistan Army for almost 20 years but now

Armed forces are purchasing COROLLA for this purpose.

Consumers: Our largest segment of market is consumers. Indus Motor

Company Ltd. is well aware of this fact that this is the segment that gives

feedback and value to our product because they are the ultimate buyers.

Pakistan is a developing country and that’s why consumers of TOYOTA are

upper middle class, upper class and upper class. These are executives,

managers, businessmen landlords and politicians. To meet the needs of middle

class Indus Motor Company Ltd. has acquired the production of DAIHATSU

Company and is producing CUORE that is proving to be another successive step

of Indus Motor Company Ltd.

Business Buyers: last but not the least is our business buyer who buys the

product for the sake of profit. “It never disappointed us” says a dealer.

Market Needs: Pakistan is developing a vast market of automobile that needs

proper placement of product. When someone enters in competition with Indus

Motor Company Ltd. they have to build quality products like COROLLA, HILUX

and CUORE, they have to establish a dealer’s network all over the country like

that of Indus Motor Company Ltd.’s and have to care for the customers. These

are the ingredients that have helped Indus Motor Company Ltd. to meet market

needs.

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Indus Motor Company Ltd.
We have customers who trust us for reliability, performance, safety, status,

functionality and care. They understand the fact that it is not possible to get all

these things at the same time from some one else.

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Indus Motor Company Ltd.
 PRODUCT STRATEGY
Worldwide acceptance of TOYOTA is proof of its best quality products. Indus

Motor Company Ltd. has stepped in this race in 1991 by producing COROLLA

XE. Then it has continued innovations like COROLLA GL, Gli and 2.0D. At the

same time it acquired the ownership of manufacturing facility from DAIHATSU

and started the production of CUORE. The third category of production is of

carriage van that Indus Motor Company Ltd. is engaged with by producing

HILUX.

Idea: it is hard to tell that from where the idea has came but it is for sure that it

was generated seven years ago. As we have already mentioned its idea was

established in Japan and TOYOTA Motor Corporation Japan started the process

of idea generation, screening and testing somewhere in 1995.

Prototype Development: First prototype of COROLLA 2002 was developed in

1997 in TOYOTA Motor Corporation Japan. Than TOYOTA Motor Corporation

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Indus Motor Company Ltd.
invited its customer for survey and testing and after progressive tests they started

its production in 2001 in Japan.

Worldwide Distribution: After start of its production in Japan, TOYOTA Motor

Corporation started the process of worldwide distribution and new COROLLA is

now being produced in 65 countries of world. As already mentioned, Indus Motor

Company Ltd. has got these rights in 2002.

Testing and Survey: There are 28 dealers in Pakistan of Indus Motor Company

Ltd., of these provided test drive to their customers and for this they sent formal

invitations. TOYOTA Multan Motors Multan’s official says, “We have never seen

such a rush of people at TOYOTA and the important thing is that, whoever is

coming to visit our showroom, he or she is going back satisfied and majority of

the visitors are buyers”.

Quality: “Our name is the assurance of quality” says Indus Motor Company Ltd.

Officials. The company pays foremost attention to the quality of its products and

to its manufacturing processes and has therefore acquired ISO 9002 certification

back in the year 1999 and the certificate has been further renewed for three

years in august 2002.

WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR

ACTIVITIES LEADING TO:

• MANUFACTURING HIGH QUALITY PRODUCTS.

• CUSTOMER SATISFACTION.

• SERVICE TO SOCIETY.

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Indus Motor Company Ltd.
 • MAINTAIN MARKET LEADERSHIP.

Standard Features: Following are some important features provided in

COROLLA 2002

Basic
COROLLA Sedan
Specification 1.3L XLI 1.3L GLI 1.6L 1.6L SE 2.0D 2.0D
SE Saloon Saloon A/T Saloon
Exterior- L*W*H (mm) 4530*1705*1480
Interior- L*W*H (mm) 1915*1430*1230
Wheel Base (mm) 2600
Minimum Turning Radius 4.6m
Engine Type 2NZ-FE 3ZZ-FE 2C
Engine Displacement cc 1299 1598 1975
Fuel System EFI Fuel Injection
Transmission 5 M/T 4 A/T (ECT) 5 M/T
Brakes FR/RR Ventilated Disc/Disc
Suspension FR/RR Leading Arm, Machpherson Strut Coil Spring/ETA Torsion Beam
Stabilizer Bar Front/Rear
Steering System Power
Tires 175/70 R14 175/70 R14 185/65 R14 185/65 R14 175/70 R14 185/65 R14
Fuel Cut System No No Yes Yes No Yes

Exterior
Antenna Manual Pillar Type
Bumpers Colored
Crystal Headlight 4 Lamp Multi-reflector
Door Mirrors Manual Power (Colored) Manual Power

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Indus Motor Company Ltd.
 Door Sash Back Yes
Front Wiper Intermittent Var-Intermittent Intermittent Var-
Intermittent
High Mounted Stop Lamp No Yes Yes Yes No Yes
Tinted Windscreen Yes
Mud Flaps FR/RR Black Black Colored Black Black Colored
RR Garnish Colored
Side Impact Bars Yes
Side Protection Molding Black Colored Black Colored
Sideskirts No Colored No Colored
Wheel Caps Full No Full
Wheel Rims Steel Alloy Steel

Interior
Air Conditioner Yes
Central Door Locking No Yes Yes Yes No Yes
Digital Clock Yes
Digital Trip Meter Yes
Door Trim Vinyl Fabric Vinyl Fabric
Foot Rest Yes
Heater Yes
Key Reminder Warning Yes
Leather Gear Shift Knob No No Yes Yes No Yes
Light On Warning Yes
Optitron Meter No No Yes Yes No Yes
Power Windows No Yes Yes Yes No Yes
Reverse Gear Warning No No No Yes No No
RR Console Box W/Lid W/Lid W/2 Level Lid (F) W/Lid W/2 Level Lid
RR Head Rest Adjustable
Roof Lining Moulded
Seat Belt (FR) 3 Point ELR x 2 (W/ Adjustable Anchorage)
3 Point ELR x 2
Seat Belt (RR) No Lap Type x 1 3 Point ELR x 2 Lap Type x
Seat Material Fabric
Shift Position Indicator No No No Yes X X
Speakers 2 4 6 2 6
SRS Air Bag (Driver) No Electronic No Electronic
4 Spoke
Steering Wheel 3 Spoke 4 Spoke Leather 3 Spoke Leather
Sunvisor D + P W/Mirror and Card Holder
Tachometer No Yes Yes Yes No Yes
Tilt Steering Yes
Trunk Lamp Yes
Wood Grain Finish Centre
Console No No Yes Yes No Yes
Wood Grain Finish Arm
Rest No No Yes Yes No Yes

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Indus Motor Company Ltd.
New COROLLA Design Concept: In an effort to appeal more the Young at

Heart people, the New Corolla is aimed at offering the Pakistani Customer with

World-size Wheelbase and Height to achieve more interior space, luxury and a

sporty look. We call it NCV. “New Century Vehicle” Many things in our life get

bigger as society and the environment change, or smaller as technology

advances. Toyota Engineers designed the Corolla by setting aside conventional

ideas such as, "This class of car must be this size". Making the Corolla bigger

was a natural consequence of today's trends. Toyota used large dimensions

everywhere, and created an entirely new and attractive styling for all people to

love.

Performance: Designed for style, engineered for performance, the new Corolla

offers all the technology for an outstanding performance. A dynamic new Z-

Generation Twin Cam engine for more power and control. Innovative new front

and rear suspensions that are even stronger and more flexible. Just turn the key

and take off on the best on ride of your life. ZZ-engine DOHC Mechanism Twin

Cam Technology Advantage New Z-Generation Lightweight DOHC High

Mechanism Twin Cam EFI Engine delivers greatly increased power and torque

throughout low to medium rpm for quick acceleration, enhanced performance

and better fuel economy. A High Engine demands a high-speed transmission.

Toyota is proud to introduce the ECT, an advanced technology, lightweight,

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Indus Motor Company Ltd.
compact 4-speed automatic transmission. A shift lock mechanism is incorporated

to minimize the possibility of incorrect operation of the automatic transaxle.

Break into Style: Inspired by Toyota passion for driving and rich Corolla

heritage, and fuelled by our ambition to create a new generation. Corolla that

would set the standards in its class, the New Corolla does just that. Sleek, sporty

looks, an exciting new driving style. It’s the car for people who know what’s

happening. Who shape the time? People like you. Break into style with the new

corolla. Sheer Style, anyway you look at it.

Branding: Indus Motor Company Ltd. has a license of production from TOYOTA

Motor Corporation Japan. Although it is not mentioned in its financial statements

but according to an estimate TOYOTA has brand equity equivalent to $29

billions. In 2002 Indus Motor Company Ltd. has extended its product line by

starting the production of COROLLA 2002. To extend its product’s life cycle

Indus Motor Company Ltd. has been introducing innovations in last model of

COROLLA but after a long period of 9 years it was now needed that Indus Motor

Company Ltd. may introduce a new model. Also because Honda Atlas introduced

its CIVIC Prosmetic last year, the need for a new car was boasted.

Product Line: Corolla’s product line consists of six products. It will be worth

mentioning that Indus Motor Company Ltd. started the production of all these six

models at the same time. Corolla’s product line is as follows:

COROLLA XLI 1.3 EFI

COROLLA GLI 1.3 EFI

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Indus Motor Company Ltd.
COROLLA SE Saloon 1.6 EFI Manual

COROLLA SE Saloon 1.6 EFI Auto

COROLLA 2.0D

COROLLA 2.0D Saloon

Indus Motor Company Ltd. has kept lengthening its product line throughout the

years. In 1993 it introduced COROLLA XE and in 1994 COROLLA GL. Than in

1995 Indus Motor Company Ltd. introduced COROLLA GLi and 1996 was the

year of introduction of COROLLA 2.0D that proved to be the most successful

model for Indus Motor Company Ltd. Than apparently management called for a

halt in product line and kept their product alive by eventually introducing

innovations like crystal lights, colored bumpers, power transmission etc.

Product Mix: Indus Motor Company Ltd. is operating 3 product mixes

simultaneously; first is TOYOTA COROLLA that includes 6 models, second is

TOYOTA HILUX that includes 1 model of carriage van and the Third one is

DAIHATSU CUORE that includes 2 models of small economy cars. Indus Motor

Company Ltd.’s product lines are consistent in so for as they are consumer

products that go through the same distribution channel and they perform same

functions for the buyer.

Support Services: Less expensive after sales services and high resale value

are considered the main augmentation of COROLLA. Indus Motor Company Ltd.

has a dealer’s network of 28 dealers spread throughout Pakistan with 3S (Sales,

Service, Spare Parts) network making the after sales services in reach of every

customer where ever they are. Indus Motor Company Ltd. offer a free checkup

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Indus Motor Company Ltd.
and tuning during 1000 miles of purchase and a complete warranty of 1 year or

20,000 (which ever comes first)

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Indus Motor Company Ltd.
 TOYOTA’S

PRICING STRATEGY

As already mentioned, target market of Indus Motor Company Ltd. is upper

middle class, upper class, upper class, government and resellers. Pricing plays a

vital role in success of any product. It should be reasonable enough to meet the

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Indus Motor Company Ltd.
requirements of target customers and not reasonable enough to cut the profit of

manufacturers.

Strategy: Internationally TOYOTA is using a pricing strategy that is a blend of

general pricing approaches i.e. cost based, value based and competition based

pricing. But the important and main approach is cost based pricing. Indus Motor

Company Ltd. charges their customer a price that is based on these three things;

• Manufacturing cost

• Taxes imposed by Government

• Profit

Manufacturing cost is determined by company, taxes are imposed by

Government and profit is determined by the buyer’s value (determined by

surveys). It is worth mentioning here that high taxes from government of Pakistan

also cause the price to accelerate.

While launching a new product Indus Motor Company Ltd. comes into market

with a premium strategy + penetrating price with respect to its major competitors.

There is a difference of almost 100,000 in TOYOTA COROLLA 2.0D Saloon and

HONDA CIVIC VTI ORIEL Prosmetic. This surely gives TOYOTA a competitive

edge upon its competitors of same category. As we know that price is the most

flexible P of Marketing but this is not applicable in case of COROLLA, because

Indus Motor Company Ltd. keeps its prices same and the change in prices

occurs only due to the change in some government policy.

In Pakistan Indus Motor Company Ltd. is in operation with an FOB-origin Pricing.

Along with the Ex-Factory price customer is supposed to pay the freight charges

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Indus Motor Company Ltd.
from factory that is located at Port Qasim Karachi to their destination. Indus

Motor Company Ltd. has priced its product line of COROLLA according to the

quality they offer in different models. Following are the prices of COROLLA 2002.

Model Price *
1.3L XLI 849,000
1.3L GLi 939,000
1.6L SE Saloon 1,079,000
1.6L SE Saloon A/T 1,169,000
2.0D 999,000
2.0D Saloon 1,189,000

*= Ex-factory price. Subject to change without prior notice. Does not include freight charges.

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Indus Motor Company Ltd.
 PROMOTION STRATEGY

Name of TOYOTA is as much established that it does not require much efforts in

promotions. But Indus Motor Company Ltd. has tried to change its promotional

plan for COROLLA 2002 from “prestige and luxury” to “passion and style”.

“Passion is the major emphasis of our promotional plan for this car. If you have

passion, you deserve this car” says Mr. Asif Aleem of Indus Motor Company Ltd.

regional office Islamabad.

Advertising: For the first time in Pakistan Indus Motor Company Ltd. has

launched an ad on Television. This ad too supports the statement of Mr. Asif

Aleem. Purpose of this ad was just to give the viewer an idea that TOYOTA has

produced something new and to establish curiosity in viewer’s mind. A

newspaper is another media Indus Motor Company Ltd. is using for the

promotion of COROLLA 2002. Indus Motor Company Ltd.‘s annual report states

that it has increased the budget for advertising by almost 30% during 2002 to

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Indus Motor Company Ltd.
meet the requirement of launching a new product. For the year 2001 advertising

and sale promotion’s budget figure was 38 million that became 48 million in

2002.

Sales Promotion: Normally no sales promotions are done by Indus Motor

Company Ltd. because TOYOTA has established a widespread community of its

customers who are loyal to it. At the time of purchase, customer is given a survey

form that is to be filled by customer and sent directly to Indus Motor Company

Ltd. By doing this customer are entitled an entry in the draw of free services

worth Rest. 5000.

Public Relations: Quality of TOYOTA causes its customer to be loyal to the

brand. When our team surveyed the consumers, no one has produced such

remarks that may be supposed negative. Every of its customer appreciated the

qualities offered in COROLLA 2002.

Launch: At the time of launching of COROLLA 2002 Indus Motor Company Ltd.

and its dealers took some exclusive steps for promotion of new car. On March

02, 2002 it was launched in Karachi in a ceremony held by Indus Motor Company

Ltd. Apart from this all the dealers arranged a 15 day festival at their outlets for

the promotion. They collected data of all the customers during past 7 years and

issued invitations to them. During those 15 days every dealer in Pakistan

provided test drive to the visitors. Some of the dealers in Pakistan are still

providing test drive to their visitors.

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Indus Motor Company Ltd.
PLACING STRATEGY

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Indus Motor Company Ltd.
Indus Motor Company Ltd. has the strongest network of dealership in Pakistan. It

has 28 dealers throughout Pakistan who perform all the functions of distribution

channels i.e. Information, Promotions, Contact, Matching and Negotiations. Indus

Motor Company Ltd. delivers the product to consumers using an indirect channel

of distribution which is as under:

Indus Motor Company Ltd. Dealers Customers

During the year 2001 some 148,000 vehicles were serviced at dealers outlets

and this number increased to 185,000 in year 2002. Through its strong dealer’s

network, Indus Motor Company Ltd. has made the availability of genuine spare

parts possible all over the country at a controlled price.

Following is the distribution of dealers all over the country:

Area Number of Dealers

Sindh 8
Punjab 12
N.W.F.P 3
Balochistan 1
Islamabad (Capital) 2
Azad Kashmir 1

For physical distribution Indus Motor Company Ltd. has developed a Logistic

system that performs the following functions as an attempt to maximize customer

satisfaction.

• Order Processing

• Warehousing

• Transportation
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Indus Motor Company Ltd.
Indus Motor Company Ltd. and dealers perform these functions for customers.

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Indus Motor Company Ltd.
SWOT ANALYSIS

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Indus Motor Company Ltd.
Strengths:

1. Price

2. Dealer’s network

3. Safety

4. Sporty Look

5. 1 year/20000 mile warranty

6. Resale Value

7. Status Symbol

Weaknesses:

1. Full Payment on Booking

2. Long time of Delivery

3. Payment of Delivery Charges by customers

4. Change of Price applicable to Undelivered Vehicle

Opportunities and Threats:

1. Competition Opportunity/threat

2. Economy of Country Threat

3. Availability of Imported vehicles Threat

4. Decrease of Taxes by government on imported vehicles Threat

5. Acquisition of DAIHATSU Opportunity

6. Incorporation of Made in Pakistan Automobiles Threat

7. Leasing facility Opportunity

8. Customer loyalty Opportunity

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Indus Motor Company Ltd.
People’s view: Image of TOYOTA is of a companion in its customer’s minds.

People say that we do not buy this car because of its durability, status, safety or

reliability; we buy it because of TOYOTA. Simply saying, people of Pakistan trust

TOYOTA to a degree that if TOYOTA launches a cart, people will buy it without

hesitation. Availability of cars all over the country, less maintenance expenses,

resale value and status representation are some values that are helping

TOYOTA to build such a long lasting relationship with its customers.

-THE END-

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Indus Motor Company Ltd.