It is recently reported that Pak Suzuki has increased the prices of its vehicles in Pakistan. The decision to increase the prices has been taken to compensate the drop in sales (which is a controversial decision and the impact might be seen in the next quarter). The company recorded substantial increase in profits during the Punjab Taxi Scheme, which has now ended.
During the last two quarters of 2016, the company’s profits dropped by 55% compared with the same period last year. Reports indicate that the end of Punjab Taxi Scheme and a stronger Japanese Yen have triggered this increase.
Industry insiders, however, consider the increase in car imports as one of the main reasons behind the drop in profits of the auto manufacturer. Consumers are of the view that Pak Suzuki’s vehicles are already priced higher than the value they offer.
Nevertheless, the news has spread negative sentiments among the customers who are looking forward to purchase Pak Suzuki’s vehicles. The new prices of Pak Suzuki vehicles (effective from 1st April, 2017) are:
- WagonR VXR = PKR 1,054,000 (+25,000 rupees)
- WagonR VXL = PKR 1,094,000 (+25,000 rupees)
- Ciaz M/T = PKR 1,859,000 (+160,000 rupees)
- Ciaz A/T = PKR 1,999,000 (+160,000 rupees)
- Mehran VX = PKR 655,000 (+5,000 rupees)
- Mehran VXR = PKR 708,000 (+5,000 rupees)
- Mehran VX CNG = PKR 725,000 (+5,000 rupees)
- Mehran VXR CNG = PKR 778,000 (+5,000 rupees)
- Ravi VX = PKR 672,000 (+1,000 rupees)
- Bolan VX = PKR 730,000 (+5,000 rupees)
It is important to note that customers who placed their orders before 1st April, 2017 will be charged the previous prices.
Furthermore, this isn’t the first time that we have heard about the increase in prices of Pak Suzuki’s vehicles. Last year, in August, the company increased the prices of Wagon R, Cultus and Mehran by PKR 103,000, PKR 80,000 and PKR 20,000 respectively.