Karachi (November 03, 2018): Pak Suzuki Motor Company Ltd has raised prices of various models by Rs40,000 effective from November 1.
It is for the fifth time in the current year Suzuki has increased prices of its cars. However, the company did not raise the price of Mehran, Ravi and Bolan, whose sales have gone down recently.
The prices of WagonR-VXR and -VXL have been increased to Rs1.184 million and Rs1.274m respectively.
The new prices of Swift-DLX and -AT are Rs1.515m and Rs1.651m respectively, and those of Suzuki Cultus-VXR, -VXL and -AGS have been fixed at Rs1.380m, Rs1.501m and Rs1.608m respectively.Besides, N. J. Auto Industries has also pushed up the prices of its 70-250cc bikes by Rs2,000-5,000 due to rising cost of imported materials on account of rupee devaluation against the dollar. The new prices of bikes would be effective from November 5.
Amid higher localisation claims by the assemblers, consumers had witnessed four to five times price hike in cars and motorcycles in the current year.
On October 10, rupee lost its value by 7.5 per cent against the greenback while on October 24 it gained by 1.5pc. From December 2017 till to date, the rupee has lost its strength by around 18pc against the dollar.
According to a report of Competition Commission of Pakistan, Indus Motor Company (IMC) has achieved 60pc localisation in Toyota Corolla followed by 68pc localisation in Honda City and 75pc in Suzuki Mehran.The rupee has weakened by nearly 26% against the dollar since December 2017. Since then, all auto companies have increased their car prices multiple times in order to pass the impact of increased cost on to consumers.
Roughly, cars manufactured in Pakistan have around 50% of their CKDs imported from abroad for which the companies pay in dollars, therefore, the cost of procurement rises as the rupee falls.