A price hike amidst supply chain woes
Are you ready to hear the latest on the car market in Pakistan? Buckle up, because things are about to get bumpy. Pak Suzuki Motor Company (PSMC) has just announced a massive price hike of Rs. 350,000 for their best-selling models including the Suzuki Alto, Wagon R, Cultus, and Swift.
Earlier, Honda Atlas Cars Pakistan Limited (HACPL) raised their prices.
What is behind this sudden spike in price? It is a tale of two currencies, as the constant depreciation of the Pakistani Rupee against the US Dollar has made business difficult for these automotive giants. And to make matters worse, restrictions on the import of CKD kits have only added fuel to the fire.
Effective from the 9th of February, these price hikes will apply to all vehicles offered by PSMC. But be warned, these prices are subject to change without any prior notice, and any government taxes or levies at the time of delivery will be the responsibility of the customer.
In related news, PSMC has announced that they will be temporarily halting operations at their automobile plant from the 13th to 17th of February due to an insufficient inventory. This is not the first time this has happened either, as they had to shut down operations earlier in January for the same reason. The company has reported that recent restrictions imposed by the State Bank of Pakistan (SBP) on imports have negatively impacted their clearance of import consignments and led to this shortage of inventory.
Unfortunately, this crisis is not limited to just PSMC. The auto industry in Pakistan heavily relies on imports, and with the SBP’s restrictions on opening Letters of Credit (LCs) and the persistent depreciation of the rupee, various industries are facing operational challenges. As a result, PSMC has even suspended new bookings for their motorcycles starting January 20th, but they assure us that bookings will resume once the situation improves.
So there you have it, folks. The car market in Pakistan is facing some tough times, but we’ll be sure to keep you updated as things progress. Stay tuned!
