Auto assemblers raise car prices thrice in 2013

Auto assemblers raise car prices thrice in 2013

KARACHI: The performance of the auto sector remained unimpressive during 2013 as the consumers suffered a lot from the frequent price hikes by all the three local auto assemblers when import of cars was curtailed by reducing the age limit.
It had been observed in 2013, all three local auto assemblers, taking full advantage of government's apathetic attitude towards consumers' rights increased their vehicles' prices thrice during the outgoing year 2013.
Industry experts were not happy with the overall situation of the auto sector of the country during 2013 as they were of the view that Japanese auto assemblers have continued exploiting consumers by increasing prices regularly. 
When small segment cars are the true need of the country, the auto assemblers have failed to accommodate middle class of the society by discontinuing its small segments cars and during 2013 no new model of below 1000cc car was introduced by any assembler, they added.
The auto assembling companies cited the increasing dollar value as a reason for three times price hikes in 2013. However, industry sources rejecting the assemblers' claim said that Japanese yen has decreased against the rupee last year and all the three assemblers had imported their parts from Japan. 
According to the details, Pakistan Suzuki Motor Company (PSMC) increased its vehicles prices from Rs 40,000 to Rs 90,000 in total for different models that translated into an increase from 3.15 percent to 6.09 percent during 2013.
Indus Motor Company (IMC) raised its vehicles' prices by 1.73 percent to 23.52 percent and Honda remained leader in this practice by increasing its vehicles' prices from 3.34 percent to 41.33 percent in the year under review.
First price hike of 2013 was announced by PSMC on January 19, 2013 when the company increased Rs 20,000 for its 800cc segment models while Rs 50,000 were added in the 1000cc segment and Rs 70,000 was increased for 1300cc segment.
Similarly, IMC announced first price hike on June 28, 2013 where the company increased it vehicle's prices by Rs 14,000 to Rs 461,500 for different models of its cars, following it the company again increased prices on September 1, 2013 within the range of Rs 21,000 to Rs 75,000. 
However, the company did not end its price increment policy as IMC increased third time its vehicle's prices on November 18, 2013, by Rs 21,000 to Rs 75,000.
Resultantly, the company cumulatively added minimum Rs 55,000 to its lower segment range and maximum addition was Rs 585,000 in its 2500cc segment in 2013.
First price hike of Honda in 2013 was observed on July 23, 2013, second was on August 31 and last for 2013 was announced by the company on December 13.
Meanwhile, Honda also following its contemporaries increased Rs 55,000 for Honda City and Rs 86,000 for Honda Civic and Prosmatec. Honda Accord's prices witnessed Rs 290,000 addition and CRV's prices enlarged by a total of Rs 400,000 during the outgoing year.

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