Hyundai-Nishat Motors has jacked up prices of its vehicles in the range of Rs176,000-Rs526,000 amid tough economic conditions, sales tax increase and rupee depreciation.

The new prices will be applicable from March 7, according to a notice sent to dealers.

After an increase of Rs176,000 and Rs276,000, the new prices of Elantra 1.6 and 2.0 are Rs5,875,000 and Rs6,375,000, respectively.

SUV Tucson FWD’s price has gone up by Rs198,000 and its AWD variant price has been increased by Rs298,000. The new prices are 7,597,000 and Rs8,197,000, respectively.

The prices of Sonata 2.0 and 2.5 variants have gone up by Rs513,000 and Rs526,000. The new prices are Rs9,162,000 and Rs9,925,000, respectively.

Almost all car and motorcycle companies have jacked up prices of their cars more than once in the ongoing calendar year.

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

Over the past one month, Pak Suzuki Motor Company, Indus Motor Company, the assembler and seller of Toyota-brand vehicles in Pakistan, Honda Atlas Cars, and Lucky Motor Corporation (KIA) have jacked up prices of their vehicles.

Some companies have also incorporated the increase in sales tax, and passed on the impact to the consumer.

The downturn in the economy, increase in the cost of auto financing and significant rise in car prices have tanked car sales in the country.

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%.