The Pak Suzuki Motor Company has decided to decrease costs for vehicles priced between Rs75,000 and Rs199,000. This is due to the strengthening of the rupee versus the dollar.
Shafiq Ahmed Shaikh, the company"s head of public relations, acknowledged that "Pak Suzuki has decreased prices." The 660cc Alto is now Rs 116,000 cheaper according to the corporation, and the top-of-the-line Alto VXL AGS is now available for Rs 2.223 million.
Similarly, WagonR and Cultus have seen price reductions of Rs. 147,000 and Rs. 145,000, respectively. Cultus AGS costs Rs3.234 million, whilst WagonR AGS is now offered for Rs2.802 million.
According to Asad Ali of AL Habib Capital Markets, "Pak Suzuki Motor Company (PSMC) has also dropped its automobile costs by 5% to pass on the benefit of the rupee"s rise versus the dollar, following Toyota. However, due to supply constraints, which compelled the company to stop its factory from August 18 to 19, we do not anticipate a significant increase in volumes.
The cost of the brand-new Suzuki Swift has decreased by Rs 199,000, making the Swift GLX CVT, the model at the top of the line, available for Rs 3.760 million.
According to car expert Ali Asif of Aba Ali Habib Securities, the auto sector has not decreased the price of its automobiles by the same amount that it has raised it.
The most recent price increase occurred in April 2022, when the dollar parity was 185, as opposed to 235 in August 2022. Given that businesses are still keeping a little dollar margin, the present price decline is quite close to the dollar parity of 220. He noted that this might result in a minor boost in auto sales.
The four-decade-old middle-class automobiles Ravi and Bolan have had their prices slashed by Rs75,000 and Rs79,000, respectively. Following the price adjustment, Bolan is now priced at Rs1.50 million, while Ravi pickup is now available for Rs1.424 million. Bolan Cargo now costs Rs1.487 million after decrease.
"The car industry is facing a shortage of completely knocked down (CKD) parts. Prices would drop even lower if the currency drops to Rs200, and they may drop even further if the rupee floats at 190 to the dollar, according to Sabir Shaikh, an expert on the auto industry.
"PSMC has decreased automobile pricing following the rupee"s gain, however the price cut does not match the earlier increase. They raised automobile prices the last time when the rupee was trading at 185 to the dollar, and they have now distributed the difference, according to automotive analyst Arsalan Hanif. Because of lower inventory levels and lower capacity utilisation as a result of the State Bank"s implementation of a procedure to acquire prior authorisation for imports under HS code 8703, he continued, sales will continue to be under pressure.
According to Mashood Khan, an expert on the car industry, "this is the first time in history that we are experiencing this fall in pricing after appreciation in the value of the rupee versus the dollar."
In the high-end sector, Toyota (Indus) dominates, while Suzuki dominates the small engine market. He continued, "It is encouraging to see that these market leaders are establishing trends that they would similarly lower prices as the value of the dollar declines."