KARACHI: The auto assemblers on Wednesday again shocked buyers of bikes, rickshaws, cars and commercial vehicles with immediate price hikes in the range of Rs10,000 to Rs350,000.
Lucky Motor Corporation Ltd (LMCL) jacked up the prices of various models by up to Rs350,000 citing no reason.
The new rate of Picanto Automatic, Stonic EX plus, Sportage AWD and Sportage Black (Limited Edition) is Rs3.950 million, Rs6.280m, Rs8.920m and Rs9.650m as compared to Rs3.825m, Rs6.050m, Rs8.820m and Rs9.300m.
Yamaha Motor Pakistan Ltd (YMPL) increased the prices of different models of motorbikes by Rs15,500-17,000 without mentioning any reason.
After the price jump, the new rates of Yamaha YB125Z, YB125ZDX, YBR125, YBR125G and YBR125G (matt dark grey and matt orange) are Rs396,000, Rs423,500, Rs435,500, Rs453,000 and Rs456,000.
Pak Star Automobile Private Ltd increased prices by Rs10,000-15,000 in 100-150cc loaders and 200cc auto rickshaws effective Sept 5 attributing the price hike to rising production cost on account of rupee-dollar parity, gas, power and petroleum products prices.
New Asia Automobile informed its dealers on Aug 31 regarding a jump of Rs10,000-15,000 in auto rickshaws and cargo loaders.
An auto part maker/exporter, Mashood Ali Khan said the auto industry has been going through very hard times due to a falling rupee, restrictions on LCs, limiting car financing and high interest rates are causing production slowdowns besides pushing up vehicle prices.
“Declining trend in car production is unlikely to be reversed in near future and may run till December,” he feared, adding the industry at present sees no change in fiscal policies and government support.
He said small and medium-sized auto vendors are badly hurt under these situations and are finding no room for survival. They are making sacrifices to continue their operation to maintain employment but some of the SMEs are closing down.
Mr Mashood said the local industry needs some kind of corrections in fiscal policy and government support to avoid large retrenchment of the workers.
As other assemblers will follow suit soon, Insight Research said that the Indus Motor Company (IMC) in its corporate briefing had pointed out that it had protected their customers in 1HFY23 from car price hikes for which it had incurred huge exchange losses but eventually the impact of rupee devaluation would be passed on to the customers. Car prices are set at a rupee-dollar parity of 285.
Published in Dawn, September 7th, 2023