Pak Suzuki has jacked up its car prices by up to Rs180,000, blaming inflation and an increase in its overhead expenses.
According to the new rates shared by the company with its authorised dealers, Pak Suzuki has raised the prices in range of Rs80,000 to Rs180,000.
The new prices take effect from March 1, 2024.
“Keeping in view inflation, increased overhead expenses, increased international raw material and accessories cost, and shipment/freight charges, it became difficult for Pak Suzuki to hold the prices,” Shafiq Ahmed Shaikh, Head of Corporate Affairs, told media.
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After the latest prices increase, hatchback Alto’s top of the line model Alto VXL AGS will now be sold atRs3.045 million, a price hike of Rs110,000.
The highest price increase has been seen in Cultus AGS, which will be sold at Rs4.546 million, after a price increase of Rs180,000.
“In addition, especially due to Red Sea matter, which is not in our hands, it is a very critical time for Pak Suzuki to control prices due to significant increase in the freight expenses. There is no certainty as to how long this matter will continue,” said Shafiq.
“So, we are compelled to pass on a very minimal portion of this adverse impact through price increase on some of our products.”
Brokerage house Arif Habib Limited (AHL) research analyst Muhammad Abrar Polani said as the demand recovered a bit in January, the hike in car prices was anticipated because companies were waiting to pass on the inflationary pressure.
“It won’t impact sales much given the price hike is minimal,” he said.