Pakistan is facing severe economic pressure, with its foreign exchange reserves registering a steep drop, as well as the weakening value of the rupee against the US dollar.
For a country whose local industries rely heavily on imported components, exchange rates significantly affect prices and production costs. While smartphones, raw material, oil, and other imports are getting more costly, the auto industry too has been gradually increasing its sale prices.
Since the beginning of this current year, each known car organization has reported various value increases. Indus Motors Corporation, home to Toyota vehicles in Pakistan, as of late ended generation because of the Rupee’s debilitated esteem, as it causes the organization’s creation expenses to increment unfavorably.
Another report from a neighborhood distributor says that the auto organizations will build their offering costs much further, by up to a gigantic Rs. 225,000 in any event, in order to represent up and coming changes in return rates and customs obligations, import costs, and different duties.
As per educated sources, the three major neighborhood auto organizations – Toyota Indus, Pak Suzuki, and Honda Pakistan – are at present assessing how the rupee’s fall unfavorably impacts their financial plans, and may before long think of new, expanded costs for their items.
They are relied upon to make a declaration some place amid the following couple of weeks.
As per the report, Pak Suzuki’s price increase will be from Rs. 50,000 to Rs. 100,000 for its product line. Toyota Indus, on the other hand, is going for a straight up Rs. 150,000 increment. Lastly, Honda Pakistan is expected to go for a Rs. 150,000 to Rs. 215,000 increase for its lineup.
A spokesperson from one of the local companies said,
We know that our sales have declined by 30 percent due to ban on non-filers to purchase cars, but the companies cannot bear the brunt of current depreciation in Pak rupees and increase in different taxes and duties,
Other brands are also likely to announce new prices soon as well as motorcycle companies.