In light of the fact that the rupee increases against dollars, Pak Suzuki Motor Company has decided to lower prices from Rs75,000 to the price of Rs199,000.
“Pak Suzuki has cut costs,” Head of Public Relations for the company Shafiq Ahmed Shaikh confirmed. The company has cut the cost of the 660cc Alto by Rs116,000, after which the highest-spec Alto VXL AGS is on sale for Rs2.223 million.
The prices also of WagonR and Cultus have been cut by Rs147,000 and R145,000 respectively. WagonR AGS is now available at Rs2.802 million. Cultus AGS costs Rs3.234 million.
AL Habib Capital Markets auto analyst Asad Ali stated “following Toyota, Pak Suzuki Motor Company (PSMC) has reduced the prices of its cars by 5% in order to profit from the appreciation of the rupee against the dollar. But, we don’t expect a significant increase in production due to supply constraints that have caused the company to shut down its facility from August 18 until 19.”
The cost of the new Suzuki Swift has gone down by Rs199,000, after which the most popular Swift GTX CVT is on sale for Rs3.760 million.
The auto industry hasn’t decreased the cost of their cars in the same way that they increasedthem, according to Aba Ali Habib Securities auto analyst Ali Asif.
Also Read: Pak Suzuki increases car costs by up to Rs 661,000
The most recent price hike on April 20, 2022, was the level of 185 dollars in comparison to the dollar parity of 220 at the time of August 20, 2022. The current price decrease is in close proximity to the parity of 220 dollars which means that companies are keeping an enviable margin in dollars. This could lead to an increase in car sales, he said.
Ravi and Bolan Bolan, two vehicles that have been in use for four decades for the middle-class price has been cut by Rs75,000 or 79,000, respectively. In the wake of the price cut, Ravi pickup is now offered at Rs1.424 million, while Bolan is priced at Rs1.50 million. Following a price reduction, Bolan Cargo now costs Rs1.487 million.
“There is a deficiency of totally damaged (CKD) components in the automotive sector. If the dollar falls to Rs200 the prices will fall further, and the fall may be more severe when the rupee is floating at 191 against the dollar” auto industry specialist Sabir Shaikh. “PSMC has reduced prices for cars due to the appreciation in the rupee, but the reduction does not match the previous increase. In the past, they increased prices for cars when the rupee was around 185 dollars, and now they are passing on the price difference,” said auto analyst Arsalan Hanif. The market is expected to remain in a slump because of lower inventory levels and a consequently less capacity utilization since The State Bank introduced a mechanism to get prior approval for imports that fall under the HS code 8703, ” he said.
“This is for the first time ever in human history that we have witnessed the price decline following appreciation in the value dollars against rupees,” said auto industry specialist Mashood Khan.
Toyota (Indus) leads the way in the premium segment as well as Suzuki is the leader in small-engines. It’s great to see that the market leaders are setting trends for the future. If the dollar weakens They will also reduce prices down, he said.
