Hyundai-Nishat Motors has slashed the prices of its vehicles in the range of Rs200,000-800,000 in its Tuscon and SANTA FE Hybrid series.

The price of SANTA FE Hybrid AWD Signature has been reduced by Rs800,000 to Rs13.899 million from Rs14.699 million.

Whereas, the SANTA FE Hybrid FWD Smart will be selling at Rs12.49 million after a price reduction of Rs500,000.

Moreover, the popular crossover SUV Tucson AWD Black Single-Tone will now be selling for Rs8.784 million after a price drop of Rs200,000, while its Beige Two-Tone variant is now available at Rs8.709 million.

The company also reduced prices of Tucson FWD GLS Sport, and Tuscon FWD GLS by Rs200,000 each to Rs8.08 million, and Rs7.115 million, respectively.

Experts attributed the decline to several factors.

“Car sales have subdued in recent months, while the number of players in the market has increased, which has intensified competition,” Tahir Abbas, Head of Equities at Arif Habib Limited (AHL), told Business Recorder.

As a result, companies are compelled to sell at competitive prices, he said.

“Secondly, many of these cars have new models on the way, and whenever new models are released, offers with price reductions are often introduced in the outgoing model to clear out the inventory.

“In this way, the inventory is cleared, making room for the launch of the latest model.”

Experts further said that the new electric vehicle launches are also giving tough times to companies. “So these promotional offers will help companies revive sales,” they said.

Days ago, Minister for Industries and Production Rana Tanveer Hussain told media persons that the Electric Vehicle (EV) Policy will be announced by the end of this month to promote the usage of EVs in the country.

He said the government has earmarked $4 billion to promote EVs.