KARACHI, Jan 12: A leading car assembler, having over 50 per cent market share, has pushed up prices by Rs40,000 to Rs70,000.

Instead of passing on the impact of falling steel prices, the Pak-Suzuki Motor Company has decided to increase the rates from Jan 15.

The increase in prices is surprising when Pak-Suzuki is now in quandary over falling demand of all cars, especially its 1,300-1,600cc Liana. The increase in prices will encourage other car makers to follow the suit.

The consumers were expecting some kind of price cut in view of depressed sales, but the PSMCL has pushed up rates, shattering the dreams of many people who might be planning to buy 800-1,000cc cars in 2009.

According to new prices, customers will have to pay Rs40,000 more on buying Mehran VX, VXR and VX CNG 80cc at Rs447,000, Rs494,000 and Rs493,000 as compared to Rs407,000, Rs454,000 and Rs453,000 respectively. On Jan 1, 2008, these cars were available at Rs325,000, Rs372,000 and Rs356,000.

The company has increased an amount of Rs70,000 on 1,000cc Cultus cars. The models, like VXR, VXR CNG, VXL and VXL CNG, will now cost Rs837,000, Rs879,000, Rs900,000 and Rs954,000 as against Rs767,000, Rs809,000, Rs830,000 and Rs884,000, respectively. On Jan 1, 2008, these vehicles were priced at Rs585,000, Rs627,000, Rs647,000 and Rs689,000.

Alto 1000cc VX, VX CNG, VXR and VXR CNG will be sold at Rs606,000, Rs657,000, Rs653,000 and Rs705,000 as compared to Rs556,000, Rs607,000, Rs603,000 and Rs655,000, respectively.

On Jan 1, 2008, these four models were available at Rs433,000, Rs469,000, Rs479,000 and Rs515,000, respectively.

Ravi Standard (petrol and CNG versions) will now be available at Rs448,000 and Rs496,000 as compared to Rs408,000 and Rs456,000. On Jan 1, 2008, there were being sold at Rs315,000 and Rs347,000, respectively.

Bolan Standard (petrol and CNG) prices have been enhanced to Rs511,000 and Rs663,000 as compared to Rs466,000 and Rs518,000. On Jan 1, 2008, these vehicles were being sold at Rs379,000 and Rs417,000. Bolan GL (petrol) and Bolan GL (CNG) will carry new price tags of Rs571,000 and Rs620,000 as compared to Rs518,000 and Rs575,000. On Jan 1, 2008, these vans were available at Rs417,000 and Rs476,500.

The company has kept the prices of imported APV vans unchanged.

The company informed its authorised dealers on Monday that the trend of appreciation of Japanese Yen against the Pakistan Rupee is continuing which has resulted in an increase in the cost of completely knocked down (CKD) kits and landed cost of completely built-up (CBU) vehicles imported from Japan.

The company added that it had tried utmost to absorb this negative impact. However, it has become impossible to further carry on with this situation. The PSMCL has claimed that it has not passed on the full impact to customers.

It has been decided by the company not to charge price difference on all the pending orders received/accepted on or before Jan 14, 2009.

The company has not increased the rate of Liana 1,300-1,600cc. From Dec 15 to 31, 2008, the company had sought support of its vendors by offering them vehicles on 12 equally monthly installments at zero per cent interest rate with immediate delivery.