KARACHI: Indus Motors Company (IMC) and Pak Suzuki Motors Company (PSMC) have once again hiked the prices of their cars in Pakistan from December 1, 2020. This is a direct negation of the federal government’s claim of eased inflation and appreciation of Pak Rupee against the US dollar.
For the last 30-35 years, these auto companies have been earning huge profits on the investment of customers’ money. Since 2 years, the prices of their units have been doubled.
Official spokesman of PSMC, Shafiq Ahmed Shaikh said, “We tried to hold prices of our vehicles as much as possible to minimize the impact to our customers, but now we have increased prices on our few models.”
“As this year is very tough and hard for the industry and that’s why now the price increase is inevitable,” he added.
Despite increasing 40% earning (Rs 1.845 billion) in the first quarter, IMC has hiked the prices of its units again although it had already enhanced these prices several times in 2020. Similarly, the PSMC has showed pandemic induced losses, but analysts claim that the company was earning profit on Suzuki ‘Mehran’ but could not replace it with any other vehicle.
A dealer said, “why should a customer pay Rs 1.9 or Rs 2.1 million for low quality Suzuki’s cars in Pakistan, when they can get high quality imported cars reconditioned at the same prices?”
“Customers are avoiding PSMC’s vehicles only because of its low quality production,” the dealer added.
According to the new price list, Indus Motors has increased prices from Rs 60,000 to Rs 100,000 on different cars, while Pak Suzuki enhanced the prices of Rs 35,000 to Rs 100,000 on three of its models.
The Toyota Indus Motor is also planning to introduce new Corolla 1.6L and 1.8L Altis Grande to provide a new look to their cars from next year.
According to the sources, the IMC would make minor changes in 1.6L and 1.8L Altis Grande in 2021. The new car, named Corolla X Package, will have some add-ons, and it will come with few model changes.
The sources said that the company is expected to offer an exclusively black car interior.
Pak Suzuki has increased its car prices up to Rs 100,000. The company has hiked the rates of Suzuki Cultus VXL, AGS and Suzuki Swift Automatic Navigation.
The dealers received a notification by the company on December 1, in which the new price of Cultus VXL is Rs 1,970,000, after an increase of Rs 70,000 as compared to its old rate of Rs 1,900,000. Meanwhile, Cultus AGS has seen a hike of Rs 100,000; its new rate is Rs 2,130,000, against the old price of Rs 2,030,000.
Moreover, the revised price of 1.3L Suzuki Swift Automatic Navigation is Rs 2,210,000, after an increase of Rs35,000 from its old price of Rs 2,175,000.
Earlier in October, the PSMC had increased the prices of Rs 42,000 on every vehicle. The company had revised the prices of Alto Wagon R and Swift. The local manufacturers had cited the increase in the price of dollar as the reason for price hikes, but interestingly the dollar had come down against the Pakistani rupee in the last few weeks
According to the company’s notification, the new price of Alto VXR and Alto AGS saw a jump of Rs 35,000 and now will cost Rs 1,433,000 and Rs 1,633,000 respectively.
Meanwhile, the new price of WagonR VXR was 1,640,000 after an increase of Rs 42,000 from its old rate of Rs 1,598,000.
Moreover, WagonR VXL now costs Rs 1,730,000, compared to its old rate of Rs 1,695,000. Swift MT had previously seen a jump of Rs 35,000 and now costs Rs 2,030,000, while Swift AT’s new price is Rs 2,140,000 after witnessing a hike of Rs 35,000