Auto Industry raise prices despite fall in rupee and import duties

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Auto Industry

Pakistan auto industry once again raises the price of vehicles. Pak Suzuki announces new prices for its different models and variants. The hike in price comes when government reduces the tariff on imported parts and dollar is depreciating against rupee. The sales are also on historic low. Despite all the indicators the price for the cars and motorcycles has been increased. 

The new year surprise came on Tuesday when Suzuki rolls out new price list for its vehicles. The new prices will come into effect from January 1st 2020. 

According to Pak Suzuki Motor Comp­any Ltd (PSMCL), Suzuki Cultus and its different model’s prices are up by Rs49,000-90,000 effective Jan 1, 2020. 

Alto’s price has been jumped by Rs80,000-90,000, the new price of Alto VXR and Alto VXL has been set at Rs1.398m and Rs1.598m and Suzuki WagonR by Rs65,000 and Rs70,000 and VXL to Rs1.605m and Rs1.695m respectively.

The new price of Suzuki Bolan and Bolan Cargo have been set at Rs49,000 and Rs50,000 followed by hike of Rs58,000 in Ravi. 

Suzuki Jimny 1.5L MT was raised by Rs100,000 to Rs3.990m just on December 9. However, the company also increased bike prices by Rs3,000-5,000.

Suzuki Swift model’s new price is up and has been increased by Rs90,000.

Pak Suzuki has already made a price hike in start of the October. The independent experts and buyers are surprised over the price hike, since there are no such reasonable rationale for this move. 

Pak Suzuki’s spokesperson had come out to defend the new prices. Shafiq Ahmed Sheikh the company is continuously posting losses since four consecutive quarters. He further said, the company has been trying to make some price changes and we are trying to make a moderate change in price, despite massive cost rise caused by rupee depreciation against the dollar and increase of high taxes and duties. 

But, market pundits are shocked by the price rise. As rupee has been strengthened and tax and duties for imported parts were reduced.

Yamaha Motors Pakistan Ltd has also increased the motorbike. The new price of Yamaha YB125Z is Rs. 139,000, record an increase from Rs. 136,500, while the YBR125G’s price go from Rs. 160,000 to Rs. 163,500 and YBR125’s price would increase from Rs. 153,500 to Rs. 156,000.

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