Daily Times

Pakistan Suzuki Motors Company Limited (PSMC), for the second time in 2022, has increased car prices by up to Rs1.6 million following a jump in freight, input costs and a devaluation of the Pakistani Rupee against the greenback.

Overall, the automobile assemblers in Pakistan have increased the prices of cars by an average of 9.4 percent in March 2022.

According to a statement, the PSMC has hiked the prices of its six locally assembled models, Suzuki Alto, Suzuki Wagon R, Suzuki Cultus, Suzuki Swift, Suzuki Bolan, Suzuki Ravi, and two imported CBU models, Suzuki Jimny and Suzuki APV.

The company increased the prices of Alto VXR from Rs1,546,000 to Rs1,675,000, a jump of Rs129,000. Similarly, the price of Alto AGS variant jumped by Rs139,000 and it is now available at Rs1,886,000 against the old price of Rs1,747,000.

The cost of Wagon R VXR has risen by Rs117,000 to Rs1,019,000, compared to the previous rate of Rs1,877,000. Wagon R VXL is now priced at Rs2,129,000 following a hike of Rs123,000. Earlier, the vehicle was available at Rs1,975,000.

The price of Wagon R AGS has risen to Rs2,319,000 compared to the previous price of Rs2,158,000, showing an increase of Rs134,000. The price of Cultus AGS has seen an upward revision of Rs240,000. The new prices are Rs2,662,000 compared to its old price of Rs2,422,000 million.

The price of Cultus VXR and Cultus VXL have gone up by Rs220,000 and Rs230,000 respectively. The new price tag for both variants are Rs2,250,000 and Rs2,474,000 respectively.

Swift GL MT and Swift GL CVT have seen a price hike of Rs195,000 and Rs209,000 respectively. Their new prices are Rs2,694,000 and Rs2,908,000 against the old rates of Rs2,499,000 and Rs2,699,000. Swift GLX CVT, saw a jump of Rs270,000, taking the price to Rs3,169,000 against the old rate of Rs2,899,000.

The new price of Bolan Van and Bolan AC now stands at Rs1,283,000 and Rs1,370,000 against the old rate of Rs1,178,000 and Rs1,265,000, respectively. Furthermore, the price of Bolan Cargo has risen to Rs1,270,000. Ravi VX has seen a jump of Rs99,000, taking the rate to Rs1,216,000 against the old price of Rs1,117,000.

An increase of Rs1,459,000 in the price of Suzuki Jimny (imported CBU) has taken its rate from Rs4,590,000 to Rs6,049,000 million. Lastly, the price of APV (imported CBU) has gone up by Rs1,615,000, making the new price stands at Rs6,290,000 against the old price of Rs4,675,000.

The other automobile assemblers have also increased the prices of cars to pass on the cost pressures emanating from the continuous rupee depreciation against the dollar. This is the third time the prices have increased after the announcement of the federal budget 2021-22.

However, the first round of price hike came in November 2021 on account of rising cost pressures, followed by January 2022 when the government reversed the tax benefits given in the budget for the fiscal year 2022, an analyst at Ismail Iqbal Securities said.

Looking at the currency depreciation, further price hikes cannot be ruled out. The continuous price hikes coupled with higher interest rates and limitations on auto financing would likely hurt the auto demand in the next fiscal year, he added.

Comparing the current prices with the post-annual budget prices, where they were reduced due to a cut in the sales tax and federal excise duty (FED), shows the magnitude of price hikes in the ongoing year.