News Analysis |
With no regard to dark times ahead, possibly due to frequent change in government’s policies and an expected rise in competition (which frankly never existed before) with the entry of new players, Pak Suzuki Motor Company is all set to raise car prices in the range of Rs 20,000 to Rs 30,000, for the third time this fiscal year. According to Suzuki dealers, the company will increase car prices from Friday, the first of June, which was also confirmed by a company official.
The reason given by the Suzuki official for the third price increase in 2018 was the same as the other two of the Big three; the weakening Pakistani rupee. Previously, Suzuki had increased prices in January and March this year following rupee’s depreciation, GVS earlier reported.
In March this year, Pak Suzuki Motor Company (PSMC) had jacked up the already raised prices of its variants by up to Rs 50,000, effective from March 1st, 2018, which marked the second time the automaker had revised rates in an upward trajectory this year alone, before even hitting the second quarter. Hardly two months prior, the company had raised prices in the range of Rs 10,000-Rs 20,000 in a balancing act against the depreciating rupee.
For this third raise, a local publication reported, although the company official did not disclose prices of which cars will be increased, a Suzuki dealer said the market was expecting hike in almost all variants.
Both of Suzuki Mehran’s variants, the VX and VXR already costlier by Rs 20,000. The price of Mehran’s VX had gone up from Rs 689,000 to Rs 709,000, while Mehran’s VXR price increased from Rs 742,000 to Rs 762,000. The price of Suzuki Ravi had been increased by Rs 20,000 from Rs 706,000 to Rs 726,000. The price of Suzuki Bolan had increased by Rs 20,000 from Rs 764,000 to Rs 784,000. Suzuki Bolan Cargo’s price increased from Rs 730,000 to Rs 750,000.
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The price of Suzuki Swift NAV-MT increased from Rs 1.375 million to Rs 1.405 million while Swift’s NAV-AT increased from Rs 1.511 million to Rs 1.541 million. The price of Suzuki Cultus VXR increased from Rs 1.250 million to Rs 1.270 million.
The new price of Wagon-R’s VXL variant would now be Rs1.164 million, up Rs 50,000 from Rs 1.114 million, in the scenario that it resurfaces. In January’s price raises, experts had said that the move had been anticipated because of about 5% rupee devaluation against the dollar in December 2017. This time there has been no change in the rupee-dollar parity and hence no justification.
The price of Suzuki Ravi had been increased by Rs 20,000 from Rs 706,000 to Rs 726,000. The price of Suzuki Bolan had increased by Rs 20,000 from Rs 764,000 to Rs 784,000. Suzuki Bolan Cargo’s price increased from Rs 730,000 to Rs 750,000.
For this third raise, a local publication reported, although the company official did not disclose prices of which cars will be increased, a Suzuki dealer said the market was expecting hike in almost all variants.
Read more:Â Pakistan rejects Toyota, Honda and Suzuki after decades
Meanwhile, there were apprehensions in the auto industry that demand would fall after the government put restrictions on new vehicle purchase by non-filers of income tax returns. Reports suggest that more than half of the car buyers are non-filers.
Existing auto industry players, Suzuki, Honda and Toyota that have dominated Pakistan’s market for decades, will face tough competition from new carmakers that will enter Pakistan’s market soon. Nissan, Kia, Hyundai, Renault and United Motors are expected to roll out their cars in the next couple of years.