The new prices will be applicable only to future orders and deliveries and will not affect the customers who have booked and paid prior to this announcement, the company said in a press release issued on Tuesday.
“We have absorbed most of the cost hike and passed on what was most imperative,” explained Raza Ansari, Director Marketing at the company.
Since January, the rupee has depreciated by 15 per cent against Japanese yen while the local price of the product has increased by around 6 per cent. In addition, there have been increases in labour wages and utility prices that have forced the car manufacturer to increase the retail prices, added Ansari.
The yen, which is at a 15-year high against major currencies, has not only increased the cost of the imported completely knocked down kits, it has also raised the cost of local vendor parts because most of the raw materials of the vendors are also imported.
Indus Motor had registered a modest 6 per cent growth in car sales in September, after a 33 per cent fall in August, on a monthly basis.
Published in The Express Tribune, November 3rd, 2010.
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