On April 1, 2022, Pakistan Suzuki Motors Company Limited (PSMC) has increased car prices by up to 1.6mn, for the second time in 2022 followed by an increase in freight, cost of production, and subsequent devaluation of the Pakistani currency.
The company has hiked the prices of its six locally assembled models including Suzuki Alto, Suzuki Wagon R, Suzuki Cultus, Suzuki Swift, Suzuki Bolan, Suzuki Ravi, and two imported CBU models, Suzuki Jimmy and Suzuki APV.
Moreover the company has amplified the prices from Rs.1,546,000 to Rs.1,675,000, Rs.117,000 to Rs.1,019,000, Rs.240,000 to Rs.2,662,000, Rs.1,178,000 to Rs.1,283,000, and Rs.1,117,000 to Rs.1,216,000 respectively.
Read more: Why did Honda increase its car prices?
Similarly, Honda Atlas Cars Pakistan Limited (HACPL) has also apprised of a substantial increase in the price of Honda City, Honda Civic, and Honda BR-V in Pakistan, from 26th March 2022 onwards. The company justified its price hike due to the devaluation of the country’s currency and a higher exchange rate of USD to PKR, which directly depends upon the cost of shipping and raw material.
The price of 1.5L Honda City Aspire CVT has increased from Rs.3,454,000 to Rs.3,749,000 and the new price of Honda Civic RS 1.5L Turbo LL-CVT is Rs.6,499,000 with a difference of Rs.350,000. Likely, Honda BR-V costs Rs.4, 079,000 with a total increase of Rs.390, 000.
Inquiry over price hike
Furthermore, as a massive increase in car prices is seen in the country the government has announced to investigate the price hike through a forensic audit. During the meeting for the monitoring of the automobile industry, the Federal Secretary for Industries and Production, Jawad Malik also showed concern about the high prices and safety features of automobiles.
This dissatisfaction was also shared Public Accounts Committee (PAC), Ministry of Industries and Production, Ministry of Finance, and Engineering Development Board who also attended the meeting. It was discussed that the international auto standards will be implemented in a phased manner and would become mandatory after July 2022.
Additionally, localization was also highlighted and according to the Finance Ministry, the auto industry accounts for 2.8% of the country’s GDP. The sector also employs 500,000 people and generates 2.4 million indirect jobs.
Read more: LMC increases prices of KIA cars again!
On the hand, the representatives of the auto industry mentioned the devaluation of the country’s currency and a higher exchange rate of USD to PKR, directly affecting the cost of shipping and raw material as factors for the automobile price hike in the country.