Suzuki hikes prices by up to Rs20,000
Cites rise in raw material prices and Japanese yen as reasons.
KARACHI:
Pak Suzuki Motor Company Limited on Monday increased prices of its car models by Rs11,000 to Rs20,000, citing a rise in cost of production.
Pak Suzuki spokesperson Shafiq Ahmad Shaikh said that the price increase is a result of the sharp rise in international prices of raw materials and the appreciation of Japanese yen against Pakistani rupee.
“The price increase is marginal if we see the increase in the cost of production, most of which the company is bearing,” said Shaikh.
The price increase came around a week after the government allowed import of five-year-old used cars to pressurise local manufacturers not to increase prices.
JS Global Capital analyst Atif Zafar told The Express Tribune that local car manufacturers would face at least three to four per cent reduction in annual sales owing to the import of five-year-old cars. Annual car sales are expected to be about 135,000 units while imported car sales will be around 6,000 units in fiscal year 2011 (FY11).
“The demand of new cars is expected to remain high despite the import of used cars because its impact will not be more than three to four per cent on sales of local cars,” he said.
The demand of cars has remained high in rural areas mainly on the back of increase in the income of cotton farmers, he added.
All Pakistan Motor Dealers Association Chairman HM Shahzad said that local car manufacturers have unnecessarily increased prices 15 to 18 times over the last three years. He added that the government should support car imports so customers have a wider choice at economical prices.
Model-wise increase
Car Increase New price
Mehran Rs11,000 Rs516,000
Alto Rs15,000 Rs720,000
Cultus Rs15,000 Rs906,000
Swift Rs20,000 Rs1,078,000
Published in The Express Tribune, February 1st, 2011.
Pak Suzuki Motor Company Limited on Monday increased prices of its car models by Rs11,000 to Rs20,000, citing a rise in cost of production.
Pak Suzuki spokesperson Shafiq Ahmad Shaikh said that the price increase is a result of the sharp rise in international prices of raw materials and the appreciation of Japanese yen against Pakistani rupee.
“The price increase is marginal if we see the increase in the cost of production, most of which the company is bearing,” said Shaikh.
The price increase came around a week after the government allowed import of five-year-old used cars to pressurise local manufacturers not to increase prices.
JS Global Capital analyst Atif Zafar told The Express Tribune that local car manufacturers would face at least three to four per cent reduction in annual sales owing to the import of five-year-old cars. Annual car sales are expected to be about 135,000 units while imported car sales will be around 6,000 units in fiscal year 2011 (FY11).
“The demand of new cars is expected to remain high despite the import of used cars because its impact will not be more than three to four per cent on sales of local cars,” he said.
The demand of cars has remained high in rural areas mainly on the back of increase in the income of cotton farmers, he added.
All Pakistan Motor Dealers Association Chairman HM Shahzad said that local car manufacturers have unnecessarily increased prices 15 to 18 times over the last three years. He added that the government should support car imports so customers have a wider choice at economical prices.
Model-wise increase
Car Increase New price
Mehran Rs11,000 Rs516,000
Alto Rs15,000 Rs720,000
Cultus Rs15,000 Rs906,000
Swift Rs20,000 Rs1,078,000
Published in The Express Tribune, February 1st, 2011.