Prices of locally-assembled cars continue to rise: The News

By Hina Mahgul Rind

KARACHI: At the beginning of every year the local auto assemblers tend to increase the car prices on pretext of rupee depreciation against yen and dollar, rise in steel prices and Complete Knock Down (CKD) and various other reason.

The year 2010 dawned with the popular Pak Suzuki revising its prices up by Rs10,000 to Rs25,000 on its various models in January. Indus Motor Company increased its prices by two per cent or Rs20,000 on the popular 1300cc XLi and Rs30,000 for the GLi in February 2010. Honda kept with the trend and upped the price tags by Rs20,000 to Rs35,000 on its various models.

Atif Zafar Auto Analyst at JS Research says that the rising prices of raw materials, utilities, and other inputs along with the weakening rupee has forced the auto assemblers to pass on the cost pressure to consumers.

He said that the price increase of local assemblers would not have much affect on the auto sales because Toyota and Honda cars are usually for people who can bear the price. However the increase in the prices of 800cc and 1000cc cars affects the middle-income groups.

The price rise follows demand for opening imports of used cars. All Pakistan Motors Dealers Association president H M Shahzad says that the price increase by local auto manufacturers is unjustified.

For more on this article, please click on the following link: Prices of locally-assembled cars continue to rise: The News