Pak Suzuki increases rates of cars by Rs 50,000 to Rs 0.1m

By Moonis Ahmed

KARACHI: Pak Suzuki Motor Company Limited has raised the prices of its different brands including Liana, APV and Jimny Jeep by Rs 50,000 to Rs 100,000.

Despite the fact that all allied industries to the auto industry including steel has been showing downward trend in prices, the company has raised the prices twice in just 12 days. Suzuki had raised the prices of different brands by Rs 10,000 to Rs 25,000 in the wake of rising cost pressures amid appreciation of foreign currencies against the rupee.

According to All Pakistan Motors Dealers Association (APMDA) Chairman H M Shehzad, the company has raised the prices of Liana by Rs 100,000 to reach Rs 1,230,000 as compared to Rs 1,130,000 previously.

While talking to Daily Times he said that the company has jacked up prices of APV GLX by Rs 100,000 to stands at Rs 1,825,000 as compared to Rs 1,725,000 previously, however, the prices of Jimny Jeep after an increase of Rs 50,000 stand at Rs 1,800,000 as against Rs 1,750,000 previously.

Shehzad said that when the auto industry has just started to come out of hot waters the local manufacturers have started profiteering after little improvement in auto sales. He said that the current rise in prices by the local assemblers is not an encouraging development.

He strongly criticised the rise in the prices of different brands of the company and said that this has been the second increase in just 12 days by the company.

“At a time when auto companies are offering different attractive relief packages around the world, like America ‘buy 1 get 1 free’, the local assemblers have doubled their prices,” APMDA chairman said. “Prices of automobiles have slumped all over the world including the US, Japan, South Africa and England to attract buyers, but the situation in our country is different.”

Shahzad urged the government to reduce the taxes on imported vehicles so that automobile importers could give tough competition to local car assemblers and this will definitely favour the public.

“Importers are paying 360 percent overall duties. We want to reduce the duty on imported cars and this will only benefit the common people,” he said.

He said that curbs on import of used cars disallow the public to enjoy the right to buy a car of their choice at reasonable rates; he said adding that with the import of used cars the public had a choice to buy a car at a reasonable rate.

In absence of any compatible option, consumers have no choice but to buy whatever local assemblers are offering and that too at whatever rate they desire, he added.

Since this year’s budget with the imposition of various duties and tightening of used car import policy, the import has declined and only 4,000 cars have been imported and the government revenue under import duty has declined to less than Rs 2 billion only.

It is pertinent to mention that several calls were made to Pak Suzuki Motors spokesman but no call was received.

http://www.dailytimes.com.pk/default.asp?page=2010\01\10\story_10-1-2010_pg5_3

2 Comments

  1. Hassan

    If our politicians were not corrupt, prices of cars in pakistan would be rock botom, in the UK one can get very cheap second hand cars, these are road worthy and have (mot) every year, with out mot you cannot drive a car on the road, it means its road worthy and has passed the tests, etc,
    you can easily pick these up for £200 to £3000, as an example a £500 pound car would cost no more than £1000 to £1500 in pakistan,
    these are good cars,
    but because of high taxes and red tape , bureacracy, dirty politics,
    they put high taxes, do we really need to protect the brand new cars industry??? in a country like pakjistan we should not be placing limits and taxes as such, the only way to improve the situation of the people , is to educate them in religious matters and practise fair islamic financial sysytem,
    that does not mean give the european banking a islamic name, like sharia bons , or certificates,

  2. Shehzad said that when the auto industry has just started to come out of hot waters the local manufacturers have started profiteering after little improvement in auto sales. He said that the current rise in prices by the local assemblers is not an encouraging development.

    He strongly criticised the rise in the prices of different brands of the company and said that this has been the second increase in just 12 days by the company.

    “At a time when auto companies are offering different attractive relief packages around the world, like America ‘buy 1 get 1 free’, the local assemblers have doubled their prices,” APMDA chairman said. “Prices of automobiles have slumped all over the world including the US, Japan, South Africa and England to attract buyers, but the situation in our country is different.”

    Shahzad urged the government to reduce the taxes on imported vehicles so that automobile importers could give tough competition to local car assemblers and this will definitely favour the public.

    “Importers are paying 360 percent overall duties. We want to reduce the duty on imported cars and this will only benefit the common people,” he said.

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