- Cites higher freight charges and shipping costs
- Price-hike comes barely a month after company had reduced rates due to govt incentives
Barely a month after reducing the price tag, Changan Pakistan has increased rates across its entire lineup by Rs120,000, citing higher freight charges and shipping cost that forced its hand.
Changan was among the last auto manufacturers that reduced car prices in July following the announcement of various incentives by the government. The new measures were aimed at reducing the burden on the masses, increase auto sales, and promote the local industry. The various incentives offered included reduction in sales tax, and additional customs duty.
However, just after a few weeks, the company has jacked up prices again, more than the reduction offered earlier.
In a circular issued on Tuesday, the company informed its authorised dealerships to sell all its vehicles at revised prices. It said that increased freight charges, and overall shipping cost has gone up due to the Covid-19.
“The company has no choice but to pass on some of the increasing cost to the product price,” the circular added, asking dealers to explain it to the customers.
As per the notification, all variants of Alsvin have seen a price revision of Rs120,000. The new price of Alsvin 1.3 M/T is Rs2,269,000 against its old price of Rs2,149,000. Similarly, the price of Alsvin 1.3 DCT has gone up to Rs2,519,000 from its previous price of Rs2,399,000. The new price tag of Alsvin Lumiere 1.5 DCT is Rs2,709,000 against its old price of Rs2,589,000.
With an upward revision of Rs120,000, the new prices of Karvaan and Karvaan plus will be Rs1,519,000 and Rs1,659,000, respectively.
Similarly, the prices of Changan M9 have also been gone up from Rs1.234,000 to Rs1,354,000.
The new prices came into effect on August 24.
A few days ago, Ateeq Ur Rehman, an economic and financial analyst, had stated that freight rates by road, air and sea are getting costlier with every passing day, stressing that competition for both importers and exporters is increasing the cost of doing business.
He said that local availability of containers is not satisfactory, adding one of the reasons is the limited frequency of ships calling on ports, thus raising container charges to 300%.