Car prices increase by 10% on average in March

KARACHI: Automakers raised car prices by an average of 10% in March, citing cost pressures, caused by the free fall of the rupee, soaring freights and rising prices of imported raw materials such as steel.

“Almost all companies have raised their prices,” said Wasil Zaman, an analyst at JS Global Research. “On average, car prices have increased by 9 to 10%. The reason for this is the devaluation of the rupee, the increase in transport costs and the increase in the cost of raw materials.

Zaman added that car prices may still not be stable due to exchange rate volatility and expensive raw materials.

“The City 1.2M/T price increase of 14.7% hit the higher end of the spectrum, while the Sportage AWD price increase of 3.7% settled on the other end of the spectrum. spectrum,” said Muqeet Naeem of IIS Research.

All major car manufacturers such as Suzuki, Toyota and Honda have recently raised car prices.

The price of the newly launched Civic rose in a range of 4.5 and 6 percent, while the price of Suzuki Swift jumped around 7.8 and 9.3 percent.

A comparison of current and post-annual budget prices revealed that the 1000cc segment saw the biggest jump, where Cultus, Wagon-R and Picanto prices jumped in the 30-36% range.

The smallest increase was seen in crossover SUVs such as Sportage and Tucson, whose prices rose in the range of 14 to 17 percent.

It’s the third time automakers have raised prices after the fiscal year 2022 annual budget.

“The first round of price increases took place in November last year, mainly due to mounting cost pressures, the second in January when the government reversed tax benefits granted in the fiscal year 2022 budget , while the last one was in March,” Naeem added.

“In view of the devaluation of the currency, further price increases cannot be ruled out. Continued increases coupled with higher interest rates and limitations on auto financing are likely to hurt auto demand in the next fiscal year,” he added.

Meanwhile, bike makers such as Honda, Yamaha and United Motors also hiked bike prices in March, citing similar reasons, as car and bike makers have nearly the same entry processes.

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