Pakistan

Pak Suzuki and Toyota hints about price hikes in vehicles.

Pak Suzuki and Toyota hints about price hikes in vehicles.

While automakers anticipate a rise in car pricing as a result of rising raw material prices on global markets, further cost pressure has surfaced as a result of China’s elimination of an export tax refund on 146 types of steel products effective May 1, 2021.

Pak Suzuki Motor Company Ltd (PSMCL) and Indus Motor Company (IMC) both warned about vehicle price hikes at an analyst meeting last week.

On the contrary, despite lower import costs for parts and accessories due to the rising rupee value versus the dollar, the auto industry, particularly car and two-wheeler assemblers, has so far ignored price cuts in cars. In the interbank market, one dollar is currently trading around Rs152-153, compared to Rs168.40 in the last week of August 2020.

“We are studying the international raw material costs attentively until now and we are suffering these large increases in input cost,” IMC chief executive officer Ali Asghar Jamali said when approached by sources about a probable hike in automobile prices.

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