Pak Suzuki Motor Company on Tuesday jacked up its car prices for a third time in the ongoing calendar year, with the hike going as high as Rs263,000 on the back of increase in power tariffs along with currency fluctuation.
The price increase will be applicable from February 20, 2023. On a cumulative basis, the company has raised vehicle rates by up to Rs968,000 this year.
The auto sector of Pakistan is on a price-hiking spree since the start of 2023. Indus Motor Company and Honda Atlas have also raised automobile prices thrice.
Read details on all price increases in 2023 here
Suzuki’s cheapest passenger car – Alto VX will now be sold for Rs2.144 million following an increase of Rs110,000. The company’s high-end Swift GLX CVT saw a price increase of Rs263,000 and will now be sold for Rs4.725 million.
In a message to Business Recorder, Pak Suzuki Head of Public Relations Shafiq Ahmed Shaikh said the company hiked prices due to recent increase in cost of “electricity, gas, GST (general sales tax), different utilities and overhead expenses, currency fluctuation, economic uncertainties, increase in local and international raw material parts and accessories cost.”
The company decided to pass minimal portion of increase in expenses to the consumers through price increase.
The firm made the first increase in car prices in 2023 on January 24 and second on February 9.
Much like the economy, Pakistan’s auto industry is going through tumultuous times. It is one of the sectors most affected from 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 autoparts and raw material.
Almost all carmakers and motorcycle makers have jacked up prices.
Recently, Indus Motor Company, the assembler and seller of Toyota-brand vehicles in Pakistan, increased prices of its cars for a third time in 2023 citing “economic uncertainties and extreme volatile situation of rupee against US dollar”.
Over the past one month, Honda Atlas Cars, Lucky Motor Corporation (KIA) and Hyundai Nishat Motor also announced hikes in car prices amid rapid rupee depreciation.
In January 2023, automobile sales in Pakistan fell to the lowest level since June 2020 as they witnessed a drop of 36% month-on-month to 10,867 units, according to the data released by the Pakistan Automotive Manufacturers Association (PAMA). On a year on year basis, car sales fell 47%.
Pak Suzuki, which has the biggest market share, sold only 44 Alto units in January.