Pak Suzuki Motor Company on Friday increased the prices of its motorbikes by up to Rs50,000. The new rates will be applicable from April 7.
According to a company notification, the GD110S model got pricier by Rs32,000 and it is now available at Rs322,000. Moreover, the price of GS150 rose by Rs35,000 to Rs350,000.
The GSX125 variant will now be selling for Rs469,000 following an increase of Rs47,000. The rate of GR150 rose by Rs50,000 to Rs501,000.
Pak Suzuki Head of Public Relations Shafiq Ahmed Shaikh told Business Recorder that “as you are well aware that Pak Suzuki’s plant is often closed due to restrictions on imports, there is no production and sales. Pak Suzuki is already in huge losses worth billions of rupees.”
“Despite this and the economic instability, Pak Suzuki retained employees and fully supported its vendors and dealers,” he added.
On Wednesday, Pak Suzuki jacked up its car prices for a fourth time in the ongoing calendar year, with the hike going as high as Rs235,000.
“It is a very critical time for everyone and no one can predict when these restrictions and instability will end,” Shafiq said.
Last week, Atlas Honda and Yamaha Motor Pakistan hiked the prices of their motorcycles owing to issues with opening of letters of credit (LCs).
Atlas Honda jacked up prices by Rs5,000-15,000 while Yamaha Motor Pakistan increased rates in the range of Rs34,000-38,500. The new prices came into effect from April 1.
“High demurrage charges, inflation, increased overhead expenses, economic uncertainties, increased international, national and local raw material and accessories cost, worsening forex situation, problems in opening of LC’s are really hurting us,” Shafiq said. “This situation has made it very difficult for Pak Suzuki to hold the current selling prices.”
“We are compelled to pass on a very minimal portion of this adverse impact through price increase and the auto industry is desperately demanding help and support from the government to solve its woes,” he added.
Much like the overall economy, Pakistan’s auto industry is going through tumultuous times. It is one of the sectors most affected by rapid depreciation of the rupee and Letter of Credit (LC) issues, which arose due to depleting foreign exchange reserves because the sector is highly dependent on imported auto parts and raw material.
Earlier this week, Pak Suzuki had also announced to extend the shutdown of its motorcycle plant till April 15 and suspending its automobile plant operations from April 7 to April 14 due to inventory shortage as import restrictions continue to hit the auto sector.
Other listed companies including Toyota and Honda have also been forced to halt production in recent months due to economic difficulties that have seen central bank foreign exchange reserves drop to a level barely able to cover four weeks of imports, leading the government to impose import restrictions.
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