Automobile industry is one of the industries which have performed exceptionally in 2017 with a good growth rate. Where most of the companies went beyond their targets and new entrants signed contracts for entry in Pakistan. Few plans their reentry in flourishing industry. Pakistan Suzuki Motor Company (PSMC) has increased price of different cars. Increase in price is up to RS20000, new prices are applicable from 1st January 2018.
According to PSMC this change in price is due to the devalue of PAK Rupee against dollar in last few weeks. Devaluation has stimulated prices in many industries in Pakistan, automobile industry is heavily depending on imports so a dent in cost was already expected. PSMC has shifted the burden to end consumer by raising prices. Following are the details of increase in price of different car models of Suzuki.
The prices of Suzuki Bolan and Ravi have been increased by Rs10,000, Mehran’s VX and VXR variants also get costlier by Rs10,000 (price of CNG variants remains unchanged), while Wagon-R VXR and VXL will now be expensive by Rs20,000. The new price of Wagon-R’s VXR variant would be Rs1.074 million, while its VXL one would be available for Rs1.114 million. The rates on Pak Suzuki’s website are yet to be updated. Similarly, Mehran’s VX model is now priced at Rs689,000 and its VXR variant costs Rs742,000.
In auto mobile industry where mostly raw material is imported from international market companies have no control on price fluctuations. Companies has to shift currency fluctuations into price which will burden direct costumers and increase inflation. Since April 2017 December is the month where inflation rate crossed 4.5 PC increase which is highest rate recorded and effect many industries. If the trend continuous automobile users will face high prices in future too and the flourishing industry may face depression.