Auto makers raise prices
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KARACHI: Despite decreasing cost of imported parts on account of strengthening of the rupee and steep fall in sales during the first five months of this fiscal year, the auto assemblers on Tuesday gave car and bike buyers a fresh shock by jacking up prices.
Pak Suzuki Motor Company Ltd (PSMCL), barring Cultus, raised prices of various models by Rs49,000-90,000 effective Jan 1, 2020.
After a jump of Rs80,000-90,000, the new price of Alto VXR and Alto VXL has been fixed at Rs1.398 million and Rs1.598m followed by Rs65,000 and Rs70,000 in WagonR VXR and VXL to Rs1.605m and Rs1.695m respectively.
The price of Suzuki Bolan and Bolan Cargo have been raised by Rs49,000 and Rs50,000 followed by hike of Rs58,000 in Ravi. The price of Swift model has been increased by Rs90,000.
PSMCL had already made two price hikes in Alto660cc — first in August by Rs137,000 — Rs138,000 in VXR and AGS models and then by Rs70,000-85,000 from Oct 1.
On Dec 9, the price of Suzuki Jimny 1.5L MT was raised by Rs100,000 to Rs3.990m. Prior to this, the company also increased bike prices by Rs3,000-5,000.
PSMCL spokesperson Shafiq Ahmed Sheikh said from all four consecutive quarters till September, the company is continuously posting losses.
As a result, he said, the company has been trying to make moderate price increase as possible despite massive cost rise caused by rupee depreciation against the dollar and incidence of high taxes and duties.However, market watchers are surprised over soaring car prices when demand has been depressed and the rupee is appreciating against the dollar.
One dollar is now equal to Rs155 as compared to Rs164 on June 24, which signals declining cost of import. Overall car sales plunged 44pc to 49,110 units during 5MFY20 as demand for various cars slumped by around 35-75pc.
Car assemblers and their vendors had claimed of achieving up to 70 per cent localisation, but pushing up prices despite stability in exchange rate since June had nullified their claim.
In two-wheelers segment 90pc localisation has been achieved, but buyers have continuously been facing frequent price hikes.
Yamaha Motor Pakistan Ltd also came out with price jump for various bike models effective Jan 1, 2020. The new price of Yamaha YB125Z, YBR125G and YBR125 will be Rs139,000, Rs163,500 and Rs156,000 from Rs136,500, Rs160,000 and Rs153,500 respectively.
Published in Dawn, December 18th, 2019
