The price hike domino effect is still going strong with multiple automakers announcing increases. As per a recent report from carspiritpk.com, Morris Garages (MG) Pakistan is the latest to do so for its most popular vehicle.
Like others, MG has also announced a three-part price hike whereby:
The price revision is as follows:
| Amount | Full Payment for Nov-Dec 2021 Deliveries (PKR) | Partial Payment for Nov-Dec 2021 Deliveries (PKR) | Partial Payment for January 2022 Deliveries or New Orders (PKR) |
| Revised Price (Ex-Factory) | 5,949,000 | 6,249,000 | 6,599,000 |
| Increase | 200,000 | 500,000 | 850,000 |
Although the company is yet to officially announce the price hike for its other vehicles, the report says that the price of MG ZS has also been increased by Rs. 306,000, bringing it up to Rs. 4.44 million.
Like other automakers, the company has cited devaluation of PKR against the US Dollar, increase in freight charges, cost of transportation due to high petrol prices, and high semi-conductor chip costs to a global shortage as reasons for the price surge.
The company has already set up a local assembly plant in Lahore, yet it has only sold Completely Built-Up (CBU) units of HS. There is currently no news on when the company will begin assembling cars locally.
The government is considering increasing import taxes on vehicles to reduce the rising import bill as well as the current account deficit. MG’s inclination towards selling CBUs only will not serve them well if the import tariffs are increased.