With the devaluation of Pakistani currency against the Dollar, the automobile industry in Pakistan has gone through the worst price hike of 149% in the past five years.
Ahmad Jawad, the Vice President of Pakistan Business Forum (PBF) in a press conference told APP that three well-known automobile companies in Pakistan have revised their prices almost three times in the last one and a half months.
He further stated that along with the surging car prices, the prices of auto parts have also gone up from 33 percent to 90 percent within the same time period. Ahmad Jawad urged the Government to take strict measures in order to control the surging prices.
The PBF Vice President pointed out that the automakers shift the inflation burden straight towards the end-buyers instead of cutting their own profit margin.
Ahmad Jawad told AAP that after doing the math, we have come up with the result that automotive prices are at the highest in the last five years by 149%.
Automakers in Pakistan & Increasing Car Prices
Recently, Suzuki Pakistan increased its car prices for the third consecutive time in 2023 citing the shortage of raw materials, electricity, gas, GST (general sales tax), and currency fluctuation.
Though Suzuki stated that they have shifted a minor portion of their expenses to consumers, things are different when we look at the prices of new Suzuki cars currently available on the market.
The cheapest car in Pakistan, the Suzuki Alto VXR which was previously at Rs. 2,359,000 after the jacked-up price is now available for Rs. 2,487,000.
The same trend goes for the Suzuki Cultus VXR which is now Rs. 214,000 more expensive than it was at the start of the year 2023.
Similarly, the prices of Bolan, Ravi, and Wagon R are gone way beyond the reach of middle-class buyers. Choices are limited if you are looking to buy a car under 30 lakhs in Pakistan.
Further on, Indus Motor Company known for assembling and selling Toyota cars in Pakistan has also increased the prices for the third time in the current calendar year. Indus Motor has the same story to tell to the final consumers, the increasing expenses and devaluation of PKR against the dollar.
Following Suzuki and Indus Motors, other automakers like Atlas Honda, Hyundai Nishat Motor, and Lucky Motors (KIA) have also pumped up the prices of their vehicles all over Pakistan.
Car buyers in Pakistan are still wondering when is the right time to buy a new car. To be honest, this is the most difficult question to answer these days.
Aftermath
If the Paksitani currency continues to devalue against the dollar in the coming months, car prices will keep soaring high. But these jacked-up prices will affect the automakers more as fewer units would be sold each time there’s a price increase.
According to data released by Pakistan Automotive Manufacturers Association, Suzuki Pakistan just managed to sell 56,28 Units in March 2023. After all, the economic condition in Pakitan is at its worst these days, people have to put food on the table, not cars.
Hi there! My name is Kashif Hussain, the lead author of PakDrive. I am a huge car enthusiast and avid traveller. I have a deep passion for exploring the world and experiencing new cultures, and I love nothing more than hitting the open road and discovering new adventures behind the wheel of my favourite car. Whether I’m cruising down a winding mountain road or speeding down the highway, there’s nothing quite like the feeling of the wind and the purr of the engine beneath me. I hope to share my love of cars and travel with all of you through my writing, and I can’t wait to see where the road takes us next.”