Pak Suzuki increases car prices by up to Rs661,000

Following in the footsteps of other automakers, Pak Suzuki, the company with the biggest market share in the country, has jacked up car prices with effect from August 1, it was learnt on Monday.

The company has raised the price of its top-of-the-line Swift GLX CVT model by Rs661,000, which was the biggest jump across all models. Price of the 1,200cc hatchback is now Rs3.959 million.

Meanwhile, Alto’s basic variant VX price sees an increase of Rs314,000. The car is now marked at Rs1.789 million.

“Suzuki’s customers are very price sensitive,” said Ahmed Lakhani, an auto industry expert. “The company has appeared to have passed on the minimum impact of rupee-depreciation since it last jacked up car prices. The rupee has depreciated much more, while the company has increased prices by 20% on average.”

Lakhani said the auto industry does not only have to face an increase in the price of imported auto parts, but also higher energy and transportation costs as the rupee loses value.

However, Lakhani said he does not see demand dropping too much even as automakers raise prices, adding that even restrictions by the State Bank of Pakistan on auto financing could not slow down car sales.

“If Toyota has been selling 60,000 to 65,000 cars a year, its sales may drop to 55,000 cars. It will not be more than that.

“However, the supply side may remain choked due to restrictions on opening of LCs,” he said. “Therefore, car sales may come down because of supply side issues.”

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