Following the recent announcements by Indus Motor Company and Honda Atlas, Pak Suzuki Motor Company (PSMC) has also increased its car prices between the range of Rs115,000 and Rs355,000, citing economic uncertainties and rise in cost of production.
Pak Suzuki’s least expensive passenger car Alto VX is now priced at Rs1.859 million after an increase of Rs160,000 from January 25.
Meanwhile, Swift’s top variant will be selling for Rs4.115 million after a price hike of Rs355,000.
Wagon-R’s different variants have seen a jump between Rs208,000 and Rs257,000. Cultus’ different variant prices have gone up between Rs285,000 and Rs335,000.
“It is a very critical time for Pak Suzuki, its vendors and dealers, as all are disturbed due to no production and sales,” said Shafiq Ahmed Shaikh, Spokesperson PSMC, in a message to Business Recorder.
“This is due to the current economic uncertainties, inflation in local as well as international raw and other materials cost, the volatile situation of forex, increase in utilities and overheads. This situation has made it very difficult for Pak Suzuki to hold the current selling prices.
“Keeping this in view, we are compelled to pass on a very minimal portion of this adverse impact through the price increase,” Shaikh added.
Auto sector analyst Arsalan Hanif said PSMC increased car prices due to global inflationary pressure resulting in an increase in raw material prices.
“This will also improve margins of the company as it has been in an operating loss due to higher demurrage charges and financial charges on delayed delivery to customers,” Hanif said.
However, Hanif added that sales will remain under pressure due to lower purchasing power, inflationary pressure and higher interest rates.
Earlier, Honda Atlas Cars hiked prices of its entire line-up, with the increase going as high as Rs550,000. The company also cited exchange rate volatility and inflation in material cost as the reason behind the price-increase.
On January 13, Indus Motor Company, which assembles and sells Toyota cars in Pakistan, raised prices of its entire lineup with the increase in the range of Rs280,000-Rs1,210,000.