With increased demand of local brands in the market, Pak Suzuki Motors has got an opportunity to mint money from its customers by raising prices of its various brands from Rs 25,000 up to Rs 100,000 per unit.
According to a notification, cars prices will be increased from minimum Rs 20,000 per unit to Rs 103,000 per unit to be effective from August 01, 2016.
WagonR VXR witnessed an increase of Rs. 103,000 per unit. Its new prices reached Rs. 1.009 million. Mehran VX recorded an increase of Rs. 20,000 to settle its final prices at Rs. 650,000.
This is the second time in the calendar year when a leading automobile company made the revised announcement of prices for its all brands. Previously, it increased prices of its various brands upto 15,000 and Suzuki motorbikes by Rs 5,000 in April 2016.
It should be mentioned that Pak Suzuki is the most popular brand in Pakistan, having car models from above 1300 CC, 1000 CC and 800 CC.
The company has sold out the highest unit of cars in the outgoing financial year of 2015-16 as per statistics of Pakistan Automotive Manufacturers Association (PAMA). Its sales of cars increased to 96,893 units in the last financial year with Mehran sales were the top with 37,223 units.
The company enjoyed handsome profits due to the Punjab Taxi Scheme with the provincial government. This scheme helped it make lucrative profits consistently for the last two years.
With the conclusion of the Taxi scheme, the company’s half year profitability was down by 41 percent in 2016. Its current profit stands at Rs 1.42 billion against the profit of first half of 2015 which stood at Rs 2.42 billion.
According to automobile industry analysts, the prices of cars have been increased due to the impact of Yen which appreciated against the local currency. This resulted in increasing costs for assembling components by the company, and a decrease in margins and profitability subsequently.