The latest price hikes have radically altered the complexion of Pakistan’s auto sector. Most noticeably, A-segment cars have seen a massive bump in price and have become out of reach for a majority of car buyers.
For a long time, Suzuki Wagon R has been a consistent performer in Pakistan in terms of sales, with value for money being its calling card. However, following the latest price bump, its demand may diminish, which also holds true for its competitors.
Here’s how much the prices of Wagon R and its competitors have gone up since August 2021 (or since launch):
|Suzuki Wagon R|
|Variants||Price in August 2021 (Rs.)||Prices in August 2022 (Rs.)||Increase (Rs.)|
An Industrywide Problem
Earlier this month, Honda Atlas Cars Limited (HACL) held an analyst briefing that highlighted its future prospects. The company foresaw an up to 35 percent decline in sales due to supply-chain challenges.
Furthermore, HACL, Toyota Indus Motor Company (IMC), Pak Suzuki Motor Company (PSMC), Kia Luck Motor Corporation (KLMC), etc. are observing non-production days due to a delay in the letter of credit (LC) approval for the CKD imports.
Also, the latest data from Pakistan Automotive Manufacturers’ Association showed a massive decline in July 2022 sales. PSMC, IMC, and HACL observed up huge drop in sales, while Hyundai Nishat Motor Company Limited (HNMPL), didn’t sell a single unit of Elantra and Sonata last month.
The industry experts expect a further decline in sales in the future due to devastating inflation, price hikes, and the ongoing production crunch.