In an unexpected move, Pak Suzuki Motor Company Ltd (PSMCL) has announced a substantial increase in the prices of its vehicles, with adjustments ranging from Rs65,000 to Rs180,000 for different models.
As of the first week of September 2023, the exchange rate had seen the dollar decrease from Rs307.10 to Rs279.19 in the interbank market. This shift suggested a potential reduction in the cost of imported components, which are integral to vehicle manufacturing.
The revised pricing issued by PSMCL to its dealers includes an increase for the Suzuki Alto VX, VXR, VXR AGS, and VXL AGS models, now priced between Rs2.331 million and Rs3.045 million.
The Suzuki Cultus VXR, VXL, and AGS models have seen an increase of Rs110,000 to Rs180,000, setting their new prices at Rs3.858 million to Rs4.546 million.
Additionally, the Suzuki Swift GL MT, GL CVT, and GLX CVT models have undergone a price adjustment of Rs65,000 to Rs85,000, with new prices ranging from Rs4.421 million to Rs5.125 million.
The circular distributed to dealers did not specify the reasons behind the price hikes. However, Shafiq Ahmed Sheikh, Head of Corporate Affairs at PSMCL, later provided an explanation.
He stated that the company had not adjusted its prices for over a year despite facing significant financial challenges, including production suspensions for various reasons.
Sheikh attributed the need for the price increase to inflation, rising overheads, and the escalating costs of raw materials, accessories, and shipping.
He also mentioned the challenges posed by the situation in the Red Sea, contributing to increased freight expenses.
Sheikh emphasized that the company had absorbed the majority of these additional costs, passing only a minimal portion onto consumers.
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