Auto-makers in the country have hiked the prices of their cars and bikes despite a fall in the cost of imported parts as the rupee continues to strengthen, However, there has been a steep fall in sales during the first five months of the current fiscal year.
Pak Suzuki Motor Company Ltd (PSMCL), has increased the prices of multiple models by Rs. 49,000-90,000 effective from 1st January of next year.
The new prices are listed below:
|Model||New Price (Rs.)||Increase (Rs.)|
|Swift DLX M/T||1,995,000||90,000|
|Swift DLX A/T||2,955,000||90,000|
Alto VXR and VXL are Rs. 1.398 million and Rs. 1.598 million following a price hike of Rs. 80,000-90,000. In the case of the WagonR VXR and VXL, the new price is Rs. 1.605 million and Rs. 1.695 million after a price hike of Rs. 65,000 and Rs. 70,000 respectively. Even Swift has seen its price increase by Rs. 90,000.
Aside from Cultus, almost all models have seen an increase in their prices.
The 660CC Alto has observed multiple price hikes this year with the price being increased by Rs. 137,000 in August and then in October by Rs. 70,000-85,000.
The newly introduced Jimny has seen its price hiked by Rs. 100,000 to Rs. 3.990 million and even the bikes have seen their prices increased by Rs. 3,000-5,000.
Shafiq Ahmed Sheikh, PSMCL spokesperson said that the company had been posting losses in all four consecutive quarters till September.
Due to this, they are trying to increase the prices despite the substantial decrease in cost. Although market experts are surprised over the increase in prices as demand is decreasing and the rupee is strengthening against the dollar.
Currently, a dollar is equal to Rs. 155 as compared to Rs. 164 in June, which points to the fall in cost of imports. The car sales are on the decline with a drop of 44% in overall sales during 5MFY20.
While carmakers and their vendors had boasted of achieving up to 70% localisation, they are still increasing prices and in the case of two-wheelers, there is 90% localization but the prices are still on the rise.
Yamaha Motors Pakistan Ltd has also increased the prices of its bikes from Jan 1, 2020. The new price of Yamaha YB125Z is Rs. 139,000, an increase from Rs. 136,500, while the YBR125G has seen its price go from Rs. 160,000 to Rs. 163,500 and YBR125 will see its price go to Rs. 156,000 from Rs. 153,500.