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Markets

Lucky Motor Corp jacks up KIA car prices amid rupee depreciation in Pakistan

  • Company claims it has not passed on complete impact of rupee fall
Published February 1, 2023

Lucky Motor Corporation (LMC) jacked up prices of its KIA vehicles in the range of Rs100,000 to Rs1.3 million, citing “significant and unprecedented” depreciation of rupee against the US dollar.

“Due to significant and unprecedented devaluation of rupee during the last couple of days, it has become inevitable for LMC to increase the current ex-factory prices of all its vehicles,” wrote the company in a price notification.

The company claimed that it had not passed on the complete impact of rupee depreciation.

Hyundai-Nishat jacks up car prices by up to Rs500,000 in Pakistan

“While the impact of devaluation has been immense, LMC, being a customer-centric organisation, has decided not to pass full impact thereof to its valued customers. Accordingly, a partial impact is being passed on to the customers whereas most of it is being absorbed by LMC,” the company said.

The company jacked up the price of hatchback Picanto MT (manual) by Rs100,000 to Rs3.2 million while the Picanto AT’s (automatic) rate has been increased by Rs200,000. The new price is Rs3.4 million.

Subcompact crossover SUV Stonic EX’s price has gone up by Rs255,000 to Rs4.8 million. The rate of Stonic EX+ has gone up by Rs402,000 and the new price is Rs5.25 million.

Meanwhile, the company also raised the price of its compact SUV Sportage Alpha by Rs250,000 to Rs6.5 million while the rate of Sportage FWD has risen by Rs300,000 to Rs7.05 million. Sportage AWD is now selling for Rs7.65 million after a price hike of Rs400,000.

The company has hiked rates of its mid-size crossover SUV Sorento variants by Rs600,000 each. Following the increase, Sorento 2.4L FWD will be sold at Rs8.4 million while Sorento 2.4L AWD and 3.5L FWD will be available at Rs9.1 million.

The biggest change of Rs1.3 million was seen in the company’s luxury minivan Carnival. The vehicle is now selling for Rs15 million.

The new price is applicable on orders from January 31 onward.

The auto sector of Pakistan is witnessing a fresh round of price hikes by carmakers mainly due to recent rupee depreciation. The currency has depreciated by 23.8% against the greenback during the ongoing fiscal year.

In January, Indus Motor Company (IMC), the assembler and seller of Toyota vehicles in Pakistan, increased the prices of its cars twice.

Earlier, Honda Atlas Cars hiked prices of its entire line-up, with the increase going as high as Rs550,000.

Pak Suzuki also increased its car prices between the range of Rs115,000 and Rs355,000, citing economic uncertainties and rise in cost of production.

NBP Funds research analyst Muqeet Naeem told Business Recorder that rupee depreciation is the main reason for the recent price hikes by automobile companies.

“Increase in prices will further slow down the depleting sales for the sector,” he said.

Meanwhile, the two-wheel segment of the sector is also seeing price increase from many players including Atlas Honda. On Tuesday, the company jacked up prices of its motorcycles by up to Rs30,000, which is applicable from February 1.

Pak Suzuki has also hiked the rates of its two-wheelers with the increase going as high as Rs25,000. The new rates are effective from February 1.

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