Tag: Car prices

  • Inventory shortage forces Pak Suzuki to extend motorcycle plant shutdown

    Pak Suzuki Motor Company (PSMC) has officially announced the extension of the shutdown of its motorcycle plant until June 16, 2023. The decision was conveyed to the Pakistan Stock Exchange (PSX) through a notice on Tuesday. The company attributed this action to ongoing government restrictions on imports, which have negatively impacted the automotive industry and resulted in a shortage of inventory.

    The notice stated, “Due to shortage of inventory level, the management of the company has decided to shut down motorcycle plant from June 12, 2023 to June 16, 2023.” However, the automobile plant will continue its operations as usual.

    Previously, PSMC had temporarily closed its motorcycle plant until June 10, 2023, due to a shortage of raw materials. Furthermore, both the automobile and motorcycle plants had experienced a shutdown from May 2 to May 9. Similarly, the automobile plant underwent closure from April 7 to April 28.

    As an assembler, manufacturer, and marketer of Suzuki cars, pickups, vans, 4x4s, motorcycles, and related spare parts, PSMC plays a crucial role in the automotive sector. The Suzuki brand, originating from Japan, holds prominence in the company’s product lineup.

    Earlier in April, PSMC reported its highest-ever quarterly loss of Rs12.9 billion for the first quarter of 2023. The decline in sales and substantial finance costs were cited as contributing factors. In comparison, the company had incurred a loss of Rs460.227 million during the same period last year.

    The auto industry in Pakistan is currently grappling with numerous challenges. Indus Motor Company Limited and Honda Atlas Cars, two other prominent listed companies, have also halted production in recent months due to economic hardships.

    The country’s auto sector heavily relies on imports, making it particularly vulnerable to the government’s import restrictions and the tightening of Letters of Credit iissuance. Furthermore, soaring finance costs and significant increases in car prices have dampened consumer demand.

  • Suzuki Cultus will now be sold for Rs4.36 million following latest price increase

    Suzuki Cultus will now be sold for Rs4.36 million following latest price increase

    On Wednesday, Pak Suzuki Motor Company (PSMC) made an announcement that has stirred up the automobile industry – a decision to increase the prices of their diverse range of car models by a substantial amount, up to Rs235,000. The automaker released a notification detailing the revised retail sales prices which will take effect from April 6th.

    As the premier assembler, manufacturer, and marketer of Suzuki cars, pickups, vans, 4x4s, motorcycles, and their spare parts in the local market, PSMC’s pricing strategy has a significant impact on the consumer market. This decision will undoubtedly spark discussions and debates, as car enthusiasts and industry experts alike try to make sense of its implications.

    The latest notification from the automobile giant has set tongues wagging as it brings about changes that may impact the pricing of their products. As per the announcement, the revised retail prices of their vehicles are inclusive of federal excise duty and sales tax, but advance income tax is not included.

    Here are the latest prices of all Suzuki cars effective April 6, 2023:

    Model Old prices New prices Increase 
    Alto VX 2,144,000 2,251,000 +107,000
    Alto VXR  2,487,000 2,612,000 +125,000
    Alto VXR AGS  2,665,000 2,799,000 +134,000
    Alto AGS 2,795,000 2,935,000 +140,000
    Wagon R VXR  3,062,000 3,214,000 +152,000
    Wagon R VXL  3,248,000 3,412,000 +152,000
    Wagon R AGS  3,563,000 3,741,000 +178,000
    Cultus VXR  3,540,000 3,718,000 +178,000
    Cultus VXL  3,889,000 4,084,000 +195,000
    Cultus AGS  4,157,000 4,366,000 +209,000
    Swift GL MT 4,052,000 4,256,000 +204,000
    Swift GL CVT 4,355,000 4,574,000 +219,000
    Swift GLX CVT 4,725,000 4,960,000 +235,000
    Ravi  1,768,000 1,856,000 +88,000
    Ravi w/o Deck  1,848,000 1,940,000 + 92,000
    Bolan Van  1,848,000 1,940,000 +92,000
    Bolan Cargo 1,852,000 1,944,000 +92,000

    It’s worth noting that the prices are subject to change without prior notice, which might cause some concern among potential buyers. Additionally, the company made it clear that any government taxes and levies applicable at the time of delivery will be the responsibility of the customers.

    With this new development, the automobile industry is bracing for a potentially significant shift in pricing, and it remains to be seen how it will affect the purchasing behavior of consumers.

  • Suzuki Swift experiences price increase of over Rs1.8 million since March 2022

    Suzuki Swift experiences price increase of over Rs1.8 million since March 2022

    In a little under a year, the price of cars in Pakistan has risen dramatically. Car companies across the country have announced successive price hikes since last year. Even the most affordable models, such as the Suzuki Alto, have become prohibitively expensive, with prices that the average salaried worker can scarcely afford.

    These price hikes can be attributed to a number of factors, including the depreciation of the Pakistani rupee against the US dollar and an increase in the cost of production. Unfortunately, this has resulted in even basic car models becoming unaffordable luxuries for many people in Pakistan.

    For instance, consider the Suzuki Swift – one of the country’s most popular cars. In March 2022, the base model of the Swift, known as the Suzuki Swift GL with manual transmission, was priced at Rs2,499,000. By March 2023, the same car jumped to Rs4,052,000 – an increase of Rs1,553,000.

    Those looking for a more advanced version of the Swift are in for an even bigger shock. The mid-variant, the Suzuki Swift GL CVT with automatic transmission, was priced at Rs2,699,000 just a year ago. Today, that same model will set you back an astounding Rs4,355,000 – an increase of Rs1,656,000.

    Furthermore, the top-of-the-line model, the Suzuki Swift GLX, has seen a significant price increase. One year ago, the GLX variant was priced at Rs2,899,000. Today, it costs an incredible Rs4,725,000 – a difference of Rs1,826,000.

    Overall, the sharp rise in car prices in Pakistan has made car ownership an unattainable dream for many people. It remains to be seen whether anything will be done to alleviate the financial burden of car ownership in the country.

    To provide a clear comparison, here is a table showcasing the prices of the three variants of the Suzuki Swift from March 2022 to March 2023:

    Model March 2022 Price March 2023 Price Difference
    Swift GL Manual Rs2,499,000 Rs4,052,000 Rs1,553,000
    Swift GL CVT Rs2,699,000 Rs4,355,000 Rs1,656,000
    Swift GLX Rs2,899,000 Rs4,725,000 Rs1,826,000
  • Suzuki Swift GLX now costs more than Rs4.1 million after recent price hike of Rs355,000

    Suzuki Swift GLX now costs more than Rs4.1 million after recent price hike of Rs355,000

    As expected, Pak Suzuki Motor Company (PSMC) has announced a price hike for all cars after Toyota Indus Motor Company (IMC) and Honda Atlas Cars Limited (HACL).

    The revised retail sale prices will come into effect from January 25, 2023, according to PSMC.

    Here are the new prices:

    Model Old Price (Rs) New Price (Rs) Increase (Rs)
    Alto VX 1,699,000 1,859,000 160,000
    Alto VXR  1,976,000 2,156,000 180,000
    Alto VXR AGS  2,120,000 2,310,000 190,000
    Alto AGS 2,223,000 2,423,000 200,000
    Wagon R VXR  2,421,000 2,629,000 208,000
    Wagon R VXL  2,564,000 2,789,000 225,000
    Wagon R AGS  2,802,000 3,059,000 257,000
    Cultus VXR  2,754,000 3,039,000 285,000
    Cultus VXL  3,024,000 3,339,000 315,000
    Cultus AGS  3,234,000 3,569,000 335,000
    Swift GL MT 3,180,000 3,479,000 299,000
    Swift GL CVT 3,420,000 3,742,000 322,000
    Swift GLX CVT 3,760,000 4,115,000 355,000
    Ravi  1,424,000 1,539,000 115,000
    Ravi w/o Deck  1,349,000 1,464,000 115,000
    Bolan Van  1,500,000 1,619,000 119,000
    Bolan Cargo 1,487,000 1,606,000 119,000

    Surprisingly, the automaker has announced the highest price increase for its flagship hatchback, the Suzuki Swift GLX variant, which will now be sold for Rs4.115 million, a Rs355,000 increase from its previous price of Rs3.760 million. 

    Read more: Honda cars latest prices

    According to the notification from PSMC, the revised retail prices include the FED and sales tax but exclude advance income tax, with another condition that the prices are subject to change without notice at the time of delivery.

  • Auto financing in Pakistan declines for fourth straight month due to high interest rates

    Auto financing in Pakistan declines for fourth straight month due to high interest rates

    The number of outstanding auto loans declined for the fourth consecutive month at the end of October, according to data issued by the State Bank of Pakistan (SBP).

    At the end of November, the total amount of outstanding vehicle loan was Rs345 billion, which is Rs0.1 billion less than the Rs346 billion number for October 2021. The most recent amount owed on auto loans is 1.4 percentage points less than it was in September 2022.

    Buyers have been compelled to put off making purchases due to a sharp rise in car prices, skyrocketing interest rates, different SBP efforts to slow down auto financing, factory closures of several assemblers in recent months due to import restrictions, and delays in the delivery of vehicles.

    However, a few new automakers have recently begun to provide immediate delivery of cars in exchange for full payment following the port clearance of their imported auto kits. However, their sales may still be hampered by high pricing and a sharp rise in the benchmark interest rate last month.

    The SBP is forecasting another 100 basis point increase in the key interest rate to 16 per cent, which will cause auto demand to remain subpar for at least the coming year.

    Consumers must now make larger monthly payments on auto loans because the benchmark interest rate has increased from 7.25 per cent to 16 per cent since September 2021.

    The average 40 per cent increase in car costs since September 2021 is one of the key causes of buyer concerns.

    For instance, the price of a Honda City manual is now Rs3.77 million as opposed to Rs2.59 million in September 2021.

    In order to prevent the sale of expensive vehicles, auto loans were limited to a maximum of Rs3 million, and the length of time it took to repay them was also shortened.

  • Toyota IMC increases car prices up to Rs7 lac

    Toyota IMC increases car prices up to Rs7 lac

    Toyota Indus Motor Company has announced a massive price hike for Corolla and Hilux variants.

    The automaker blames rising manufacturing costs and the weakening rupee in a notification it has issued.

    Here are the new prices:

    Vehicle Old Invoice New Price Difference
    Toyota Corolla Altis 1.6 CVT Rs4,789,000 Rs4,979,000 Rs190,000
    Toyota Corolla Altis 1.6 CVT SE Rs5,279,000 Rs5,479,000 Rs200,000
    Toyota Hilux Rs8,449,000 Rs9,069,000 Rs620,000
    Toyota Hilux Revo G 2.8 R9,169,000 Rs9,839,000 Rs670,000
    Toyota Hilux Revo G 2.8 AT Rs9,609,000 Rs10,309,000 Rs700,000
    Toyota Corolla’s new prices

    Since January 2022, Toyota has raised the pricing of all of its vehicles by 32 to 7 per cent. Aspiring Toyota buyers are put into a worse situation by this additional price increase.

    These models are now more competitively priced with their top-tier competitors in their respective categories. Toyota may therefore be using decoy pricing to steer client spending into their more expensive items as one of its goals.

    IMC may also want to prepare customers for potential price increases that are even higher relative to those for the more expensive versions of these particular models.

    Regardless of what Toyota hopes to accomplish with this price rise, the cause is most likely the same: its operational loss of Rs3.3 billion in Q1FY23. From Rs5.42 billion in Q1FY22 to Rs1.29 billion in Q1FY23, Toyota’s sales revenue fell by 76 per cent. Toyota would have ended the quarter with a total loss if it weren’t for its Rs5.16 billion in other income.

  • Cheapest new cars to buy in Pakistan

    Cheapest new cars to buy in Pakistan

    Automotive companies in Pakistan have consistently announced significant price increases since the beginning of 2022, pushing up car prices to the point that those with low incomes cannot even consider sedans from the top or new brands.

    However, there are some reasonably priced options on the Pakistani market that buyers can consider. Here are a few cars that are priced under Rs2 million:

    Prince Pearl

    Prince Pearl may not offer the flashiest interior or the most appealing appearance, but the little hatchback is one of the most affordable vehicles on the local market.

    Regal Automobiles, the manufacturer of Prince Pearl is also among the businesses that recently revised car prices.

    Prince Pearl’s price has been increased by Rs386,000 by the company from its earlier price of Rs1,534,000 to Rs1,920,000.

    Prior to this price increase, Regal Automobiles was renowned for having one of the most affordable car lineups in Pakistan. However, its entry-level vehicle is now almost Rs2 million in price.

    Suzuki Alto VX

    Suzuki Alto VX (Manual Transmission) is also a good choice. It also has the advantage of being manufactured by a reputable brand.  Despite the fact that the car may not seem very comfortable, this variant is one of the most affordable at less than Rs1.8 million.

    Alto is currently available for Rs1,789,000. The mini-hatchback was being sold for Rs1,475,000 prior to a significant price increase of Rs314,000.

    United Alpha

    Last but not least, the United Alpha, which has a 1000cc engine and costs Rs1,559,000, is the least expensive car on the Pakistani market.

    Even though the price of this vehicle is incomparable, potential buyers may evaluate the Alpha’s resale value and parts availability.

    Given the lack of options in the Pakistani auto market, these cars are excellent choices for those who are looking for a cheap vehicle.

  • Getting a new car? Check out the new advance tax imposed on your favourite vehicle

    Getting a new car? Check out the new advance tax imposed on your favourite vehicle

    The government has released the fiscal budget for 2022-23, which includes several changes, including a 200 per cent advance tax on the purchase of cars with engine displacements greater than 1600cc for non-filers.

    This decision is likely to possess a considerable effect on the sales of several cars in Pakistan, which have already witnessed multiple price hikes in previous months. The tax amount for non-filers has now been doubled, which will have an influence on new car sales, particularly those with larger engines.

    The advance tax will now be applicable to several famous vehicles that have dominated the auto industry for years now from well-known manufacturers, including old players like Honda and Toyota, as well as new players like Hyundai, Kia, DFSK and BAIC.

    Taxes for filer and non-filer

    Toyota Corolla Altis Grande, 1800cc, ranges from Rs4,499,000-4,859,000, Tax for filer: Rs150,000, Tax for non-filer: Rs300,000

    Hyundai Elantra GLS, 2000cc, priced at Rs4,949,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    Hyundai Tucson, 2000cc, ranges from Rs5,799,000-6,299,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    Hyundai Sonata 2.0, 2000cc, priced at Rs6,999,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    DFSK Glory 1.8 CVT, 1800cc, priced at Rs5,159,000, Tax for filer: Rs150,000, Tax for non-filer: Rs300,000

    Kia Sportage, 2000cc, priced at Rs5,300,000-6,300,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    BAIC BJ40, 2000cc, priced at Rs8,199,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    Hyundai Sonata 2.5, 2500cc, priced at Rs7,849,000, Tax for filer: Rs300,000, Tax for non-filer: Rs600,000

    Kia Sorento, 2400cc, ranges from Rs6,836,000-7,499,000, Tax for filer: Rs300,000, Tax for non-filer: Rs600,000

    Toyota Fortuner, 2700-2800cc, ranges from Rs9,959,000-12,679,000, Tax for filer: Rs400,000, Tax for non-filer: Rs800,000

    Toyota Hilux, 2800cc, ranges from Rs7,359,000-9,729,000, Tax for filer: Rs400,000, Tax for non-filer: Rs800,000

    Isuzu D-Max V-Cross, 3000cc, ranges from Rs6,600,000-6,960,000, Tax for filer: Rs400,000, Tax for non-filer: Rs800,000

    Kia Sorento V6, 3500cc, ranges from Rs7,499,000, Tax for filer: Rs450,000, Tax for non-filer: Rs900,000

    Local vehicle assemblers are dissatisfied with the new budget, claiming that the government unilaterally raised advance tax on motor vehicles larger than 1,600cc because the industry did not propose it. They claim that the decision is also discriminatory and will reduce auto sales.

    Read more: Energy sector to get a massive portion of the Rs699 billion subsidy

    Advance tax on motor vehicles larger than 1600cc has been doubled, while electric vehicles costing Rs5 million or more will be subject to a 3 per cent tax.

  • Hyundai Sonata 2.5 will now cost Rs7.85 million

    Hyundai Sonata 2.5 will now cost Rs7.85 million

    Like the majority of automakers in Pakistan, Hyundai Nishat has joined the price hike bandwagon by raising the price of its sedan offerings; the Elantra GLS, Sonata 2.0, and Sonata 2.5 variants, due to increased shipping costs and continuous depreciation of the local currency.

    The premium category sedan, Hyundai Sonata 2.0 witnessed an increase of Rs140,000 in its earlier rate of Rs6,859,000. After the price hike, the car costs Rs6,999,000. Hyundai Sonata’s top trim will now be sold at Rs7,849,000 after a price increase of Rs100,000 in its previous price of Rs7,749,000.

    Hyundai Elantra GLS after getting a price of Rs150,000 will be offered at Rs4,949,000, the exact model was previously sold at Rs4,799,000.

    Read more: Pakistani rupee crashes to historic low of Rs194 against US dollar

    Almost every local or imported sedan is now out of reach of the masses as the auto industry has been massively affected by the ongoing devaluation of the Pakistani currency against the US dollar, increased freight charges along with the premium culture (own trend) in the country.