KARACHI (APP) - Indus Motor Company (IMC) has raised the retail price of all Corolla variants by about 2pc with immediate effect. According to IMC spokesman here Wednesday, the prices have been enhanced to partially offset cost increases, owing to the depreciating rupee and other inflationary conditions affecting the economy that have pushed up the CKD and the local vendor parts costs despite efficiencies and strong efforts in reducing own operating expenses. The price of 1300cc XLi has been increased by about Rs 20,000 while prices of GLi and up market 1800cc and diesel variants have gone up by Rs 30,000 each. The spokesman added that the delivery of vehicles to customers who have already booked and paid prior to this announcement date will not be affected and that the company will fully absorb the cost impact on orders in hand. The new prices will be applicable to all future orders and deliveries. He pointed out that currently there is a misconception that the local auto industry is continuously and unjustifiably increasing prices. This is unfortunate and far from reality. The Corolla prices have remained unchanged since October 2009, while during this period the Pakistan rupee has depreciated 5pc against yen which translates to over Rs 30,000 per vehicle on imported CKD and over Rs 10,000 in local vendor parts, he added. In addition, there have been increases in labor wages and utility prices. All these factors have forced the local OEMs to marginally increase car prices while absorbing most of the costs which has squeezed their margins and reduced profitability. The Company is currently working at full capacity and doing overtime to meet the market demand. It is also working closely with the vendors to expedite there supplies which at times become serious bottleneck for the OEMs. IMC is currently facing such an issue which has potential to add another Rs 8,000 per vehicle if the local supplier is unable to meet the obligation.