LAHORE - The Indus Motors Company on Tuesday announced to increase its various brands prices ranging from Rs50,000 to Rs175,000 for November and December deliveries and Rs100,000 to Rs350,000 for deliveries from January next year. This is the fourth raise in car prices by the company since December last year following the round of massive rupee devaluation against US dollar.
“After assessing the situation, the IMC announced revised prices for vehicles on which bookings will resume from 17th October. Customers who have paid full payment for orders of Oct/Nov will get cars on same prices as company will absorb the added cost. However, customers who have made partial payments for Oct/Nov/Dec will have to give 50% of added cost,” said the company in an announcement. Company officials said, “Our policy is always to take orders on partial payments and we discourage customers to give orders on full payments.”
“For November to December, Corolla prices have increased in the range of Rs50,000 to 100,000 and the prices of IMV variants have been increased in the range of Rs 125,000 and 175,000.”
According to a statement issue here, recent depreciation in Pak Rupee’s value against dollar has resulted in substantial cost increase on account of C&F, government duties & taxes, imported components and raw materials for local parts. “It is extremely difficult for IMC to hold the current retail selling prices and therefore we are compelled to pass on a part of this exchange impact to the market.”
Experts said that other companies including Honda Atlas Cars Pakistan had increased prices of its variants by up to Rs100,000 in July this year, with rupee devaluation denting the company’s cost of production. The rate hike was the third made by the company this year, each following the rupee’s plunge against the US dollar. Indus Motor Company and Pak Suzuki had also increased car prices three times till July since rupee started its downward journey against the dollar in December last year.
Prices of Civic’s 1.8 I-VTEC and 1.8L Oriel variants were increased by Rs100,000, which are being priced now at Rs2.6 million and Rs 2.75 million, respectively. Rates of City’s 1.5L Aspire MT and AT were increased by Rs50,000, pricing them at Rs1.94 million and Rs2.08 million, respectively. The BRV variants became costlier by Rs 35,000. Other variants and models were also seen a rate hike by as much as Rs30,000. Experts said that Pakistan’s auto sector is heavily dependent on the import of completely knocked down units (CKDs). A change in the exchange rate means a higher cost for the local auto industry that still relies on imported components for assembly.
The rupee has plunged about 20 percent since December 2017 as a widening current account deficit and depleting foreign exchange reserves create a headache for Pakistan’s economic managers.