2022 was a tumultuous year for the car industry due to numerous production pauses and price hikes. Previously, price hikes of such devastating nature came in 2018 due to the drastic devaluation of the local currency.
Then, in October 2021, automakers took turns jacking up prices due to the further depreciation of the Pakistani Rupee. Then, after a few months of peace and quiet in the industry, a sudden regime change occurred in 2022 which deteriorated the local currency further, resulting in another series of major price hikes.
These hikes have driven vehicles beyond affordability for most people, but given the recent ongoing economic decay, it seems that the worst is yet to come.
According to a report from autojournal.pk, the average price of vehicles has gone up by up to Rs. 2 million or 38%. Here’s how much each automobile company has increased car prices on average in 2022:
| Companies | Price Increase | |
| Amount (Rs.) | Percentage | |
| Toyota Indus Motor Company (IMC) | 2,027,580 | 38% |
| Al-Haj Automotive (Proton) | 1,315,000 | 37% |
| Master Changan Motors Limited (MCML) | 936,000 | 32% |
| Pak Suzuki Motor Company (PSMC) | 573,730 | 30% |
| Honda Atlas Cars Limited (HACL) | 1,125,330 | 30% |
| United Motors | 370,000 | 29% |
| Regal Automobile (Prince-DFSK) | 971,500 | 25% |
| Kia Lucky Motors Corporation (KLMC) | 1,168,750 | 23% |
| Ghandhara Nissan Limited (GNL-Chery) | 1,251,000 | 22% |
| Hyundai Nishat Motors Private Limited (HNMPL) | 1,098,430 | 20% |
| Peugeot Luck Motors Corporation (PLMC) | 200,000 | 4% |
Data Courtesy of Autojournal.pk
With 2023 starting, the local car industry is alive with whispers of another wave of price hikes. The last price hike saga took place in July last year, following a massive US dollar (USD) exchange rate hike, when it went up to Rs. 240 per USD. Given another recent depreciation of PKR vs USD, history is likely to repeat itself soon.
Recently, Toyota Indus Motor Company (IMC) increased the prices of some of its vehicles. According to the latest reports, the frequent production cuts and rising operational costs will likely create another wave of price hikes.
The automakers have also witnessed a decline in revenues, which they will likely seek to restore by increasing their margins. With these developments afoot, both automakers and car buyers should brace for a bumpy 2023.
