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+--- Thread: Second cut in car prices since federal budget (/showthread.php?tid=6251)
Second cut in car prices since federal budget - Naveed Yaseen - 07-16-2009 08:44 AM
By Moonis Amed
KARACHI: The start of the new fiscal year has been better for the dwindling local auto industry as some of the leading car makers have reduced prices after budget and there is another price decline by leading car maker, Pak Suzuki.
Pak Suzuki Motor Company Limited (PSMCL), car assembler with 50 percent market share, has reduced its car prices by some Rs 34,000 on different models aimed to boost falling sales amid highly depressed demand of locally made automobiles.
Like other assemblers, Pak Suzuki had pushed up the rates substantially in 2008 and also early this year several times due to trend of appreciation of the Japanese yen versus the national currency which pushed up the cost followed by rising steel prices.
Steel prices had started falling from November and December 2008 followed by massive cut announced by the Pakistan Steel. But, the assemblers did not witness any major price cut.
All Pakistan Motor Car Dealers, chairman HM Shehzad while talking to Daily Times said that the price on cars 800cc different models have been cut by Suzuki Company. Now the Ravi Pickup would be available at Rs 4,09,000 as compared to Rs 4,41,000 before this cut. Hence if the prices are compared to March 2008 there is a great increase in prices as the prices were Rs 3,35,000.
He further said that the price on various models of Bolan have been reduced by Rs 27,000-30,000, as the prices have come down to Rs 4,59,000 as compared to Rs 4,89,000 previously.
After a slash of Rs 26,000-34,000, the Suzuki Mehran is available at Rs 3,99,000 as compared to Rs 4,33,000 previously, he informed. The local auto industry is facing tough time due to low demand and high prices of the cars and the current reduction in prices by the local assembler was encouraging development, but the amount of cutback cannot be compared to the amount of increase the companies had made in the last fiscal year.
He further said that in last 8-10 months, some of the local car assemblers have raised the prices of their vehicles at least 4 times to maintain their profit margin amid all time low demand, which is totally unfair.
"Prices of automobiles have slumped all over the world including the US, Japan, South Africa and England to attract buyers, but the situation in our country is different," he added.
He said that the recent decrease has been made as the government forced the assemblers to cut prices. Federal minister for industries and production, Mian Manzoor Ahmed Watoo said that the government would force the assemblers to cut price, as the prices in the country are comparatively very high than other neighboring countries, he added.
He informed that prices are still high as compared to India, in India the price of Suzuki are lower Rs 2,50,000 as compared to the local prices.
H M Shahzad urged the government to reduce the taxes on imported vehicles so that automobile importers could give tough competition to local car assemblers and this will definitely favor the public.
http://www.dailytimes.com.pk/default.asp?page=2009\07\16\story_16-7-2009_pg5_5