Amid rising demand of local car brands in the country, Pak Suzuki Motors has increased it’s per unit vehicle prices in the range of PKR 25,000-100,000. This price hike will partially offset the negative impact of Yen appreciation against rupee and improve company’s profitability.
According to the latest numbers, Suzuki notified its current price chart showing a minimum increase of PKR 20,000 and a maximum raise of PKR 103,000 per unit. These prices are in effect from 1st August, 2016.
Pak Suzuki has raised its automobile prices for the second time during the current calendar year. Initial prices jerked up to PKR 15,000 across all brands while Suzuki motorbike prices raised by PKR 5,000 during second half of this calendar year. The company is currently the most famous brand in Pakistan selling highest number of units this year.
Brands and their prices
Referring to the given price chart, it is observed that Mehran VX has witnessed an increase of PKR 20,000 with ex-factory price of PKR 650,000. Cultus EFI also registered a significant jump of PKR 80,000 to settle at PKR 1.12 million. WagonR VXR has seen a huge upsurge of PKR 103,000 thus crossing the Rs. 1 million mark.
Being the top selling brand in the country, Suzuki has sold 96,893 units during last year. Mehran being the hot cake, selling 37,223 units alone. These numbers indicate that genuine buyers are less deterred by prices hikes due to limited available options or rising demand.
Impact of Yen appreciation on profitability
Company has increased it’s per unit price in its effort to transfer the impact of Yen appreciation against PKR. As a stronger Yen would lead to high cost of assembling car components and will eventually dent its profitability.
Suzuki was also enjoying significant profits from its partnership with Punjab government for its taxi scheme. This enabled them to mint profits during the last two years. However, Suzuki’s half yearly profits during the first half of 2016 saw a dip by 41 percent as this scheme completed its tenure. The price hike across all brands would provide much needed respite to the company which is currently facing high cost issues.
Source: ProPakistani.pk / Image credits: Facebook