By Moonis Ahmed
KARACHI: Pak Suzuki Motor Company Limited (PSMCL) has raised its car prices (excluding Liana) by Rs 10,000 to Rs 25,000 in response to the rising cost pressures amid appreciation of foreign currencies against the rupee. The prices will be effective from January 1, 2010.
“Frequent fluctuation in the foreign currency, price increase in petrochemicals and increase in utility charges are the main issues behind this increase,” Pak Suzuki spokesman Shafiq Ahmed Shaikh told Daily Times on Wednesday.
The dollar and yen have appreciated by 3.4 percent and 8.3 percent respectively, since July 01, 2009, he said adding that the prices of petrochemicals, including thinner paint and other chemicals have increased. “Besides this continuous increase in utility charges have compelled the company to increase prices,” he said.
The prices of Mehran models have been increased by Rs 9,000 to Rs 16,000, as prices of VX have been raised by Rs 15,000 to reach Rs 419,000 as compared to Rs 404,000, the prices of VXR have gone up to Rs 470,000 as compared to Rs 454,000 showing an increase of Rs 16,000. Similarly, the price of VX CNG after an increase of Rs 9,000 is Rs 464,000 as compared to Rs 455,000. Similarly, VXR CNG price after an increase of Rs 10,000 has gone up to Rs 514,000.
All Cultus models prices have been increased by Rs 25,000 as the prices of Cultus VXR, VXR CNG, VXL and VXL CNG now stand at Rs 790,000, Rs 830,000, Rs 850,000 and at Rs 897,000, respectively.
Rates of both Alto VXR and VXR CNG have been increased by Rs 15,000 to reach at Rs 613,000 and Rs 662,000, respectively, as compared to Rs 598,000 and at Rs 647,000 previously. Similarly, Bolan and Ravi have also witnessed price increases between Rs 2,000 to Rs 18,000 on their different models.
This increase in prices is at a time when series of terrorist attacks have rocked the country in the current month followed by the tragic suicide bomb attack on the Ashura procession killing over 40 people in the city on Monday. These tragic incidents may have sent shock waves among prospective buyers who may be thinking of suspending their plans for a new car at the eve of new year. The company production is completely up to requirement, however, there is very thin demand in 800cc cars, Shafiq said adding that the demand of 1000cc cars has shot up due to eve of new year. It is pertinent to mention that besides other auto companies including Indus Motors and Honda, the Pak Suzuki had also raised the prices in October 2009. Dealers said that the car markets were also witnessing thin presence of buyers. “Only individuals are in the market and most of them are purchasing on cash rather than opting for car financing through banks.”