KARACHI: In a fresh spherical of car costs increase, the automobile assemblers in Pakistan, throughout the board have hiked the costs by an common 9.4% in March 2022 to pass-on the cost pressures emanating from the continual PKR devaluation against USD.
To note, that is the third time costs have elevated post annual budget. The first spherical of price hike got here in November 2021, which was on account of rising cost pressures, the second got here in January 2022 when the federal authorities reversed the tax advantages given in FY22 budget, an analyst at Ismail Iqbal Securities said.
Looking on the currency devaluation, additional price hikes can’t be dominated out. Continuous price hikes coupled with higher charges of curiosity and limitations on auto financing would likely hurt auto demand in subsequent fiscal year.
The price hike of City 1.2M/T by 14.7% touched the higher finish of the spectrum, whereas the price elevated by Sportage AWD of 3.7% settled on the opposite finish of the spectrum.
The new Civic that was recently launched in March 2022 additionally witnessed a price hike in a vary of 4.5-6.0%, whereas the Suzuki Swift that was launched within the identical interval noticed price increase by round 7.8%-9.3%.
Comparison with Post Annual budget FY22 Prices
Comparing present costs with post annual budget costs (prices were reduced due to discount in gross sales tax and FED) shows the magnitude of price hikes in ongoing year.
The highest price jump was witnessed in 1000cc cars, the place costs of Cultus, Wagon-R and Picanto have surged in a vary of 30-36%. While the bottom price elevated spot in Crossover SUVs such as Sportage and Tucson, the place the costs elevated in a vary of 14-17%.
There have been addition of 12 new entrants as car producers bringing in about 15 manufacturers and 25 new vehicles within the country. As far as consumers are concerned, there are merely no good high quality new cars available at decrease price points, forcing them to purchase used imported or older locally manufactured fashions from the secondary market. The variants being launched within the nation by new entrants have so far failed to fill in these gaps.
NewsnReleases