LAHORE: Master Changan Motors Ltd announced its first price increase for 2023 on February 6 for its entire portfolio. The new prices are as follows:
Changan’s decision now makes it the sixth company to have increased its prices in a matter of a week. Previously, Honda and DFSK had increased their prices on February 4 and February 1 respectively. Similarly Hyundai, KIA, and Peugeot all announced their revised prices on January 31.
“Our completely knocked-down (CKD) kits, like that of all other companies, are imported. Even the localized parts that are made in Pakistan have to rely on imported inputs like sheet metal, resin etc. So the foreign exchange rate has a significant impact on any vehicle or parts produced in Pakistan,” Shabbir Uddin continued”.
The Pakistani Rupee began its rapid depreciation against the US Dollar on January 26 with it having lost Rs 19.87 against the Dollar since. Over the past week of price revisions, the Rupee has depreciated by 2.77% for a total of Rs 7.41 against the Dollar.
Changan’s decision to revise its prices comes sixth months after its last revision in August. “We tried to postpone it for as long as possible,” says Shabbir Uddin. “We felt the Rupee stabilise when we saw it trading at Rs 270 against the Dollar, and subsequently decided to announce our price increase in one go. We decided to do this rather than utilise the incremental revisions other manufacturers opted for. This has given us more visibility on the macroeconomic position,” Shabbir Uddin continues.
When asked about whether the Rupee could be expected to depreciate further in the future, and subsequently trigger further rounds up of price increases, Shabbir Uddin responded by stating “I wish it (the US Dollar) would not appreciate further. I pray, and I wish. However, like any other person who knows anything about economics, it is unlikely that the Rupee will stay at this price in the long-term. We will have to see what will happen with the IMF”.
Meanwhile, Proton Pakistan also announced its first price increase for 2023. The upward price revision is, however, limited to just the automatic variant of the Saga. The price change is as follows:
|Saga A/T||Rs 3,299,000||Rs 2,999,000||Rs 300,000||10.00%|
Proton’s decision makes it the seventh company to have revised their prices upwards over the past week. Previously, Changan, Honda, and DFSK increased their prices on February 6, February 4, and February 1 respectively. Similarly Hyundai, KIA, and Peugeot all announced their revised prices on January 31.
Even IMF is asking for increase in taxes.