Korean automakers in Pakistan don’t seem eager to share the gains from the strengthening of the rupee against the dollar, arguing that their price increases were already lower than those imposed by Japanese automakers.
Customers were advised by the Kia automobile manufacturer in Pakistan that the price had increased by only 14% in July, as opposed to the 19–23% increase implemented by three major Japanese manufacturers during the rupee’s fall against the dollar.
The three largest players dropped prices by 6 to 9 percent earlier this week, meanwhile, following the rupee’s more than 11 percent comeback versus the dollar since July. The price increase for all industry participants is still 15% greater than the price increase for Kia vehicles, according to the Korean assembler.
According to Kia, the major participants in the market had to adjust the prices to make the increase consistent with their automobiles. The business added that it had established a standard for other assemblers to follow when it came to pricing.
Other Korean vehicle assemblers’ dealers claimed that so far, there have been no signs of price reductions. Since our prices are already lower than those of Japanese assemblers that have reduced their pricing, they continued, “Chances of a price cut are pretty bleak.”
According to an auto assembler, pressure is mounting on the Korean assemblers to pass through the buyers’ relief from the rupee increase.
So far, the price cut by the Japanese assemblers has not been on a par with the massive rate hikes witnessed earlier in one go.
Pak Suzuki increased the prices by Rs314,000-661,000 but slashed prices by Rs75,000-199,000. Indus Motor Company (IMC) raised the prices by Rs760,000 to Rs3.16 million but has now announced reduced them by Rs260,000 to Rs1.14m. Honda Atlas Cars Limited made a price jump of Rs785,000 to Rs1.45m but a price relief of Rs280,000-550,000 was given to buyers.
Meanwhile, some Chinese assemblers have come out with price reduction from Aug 19. For example, the assembler of DSFK vehicles had decreased the prices by Rs80,000-495,000. Glory 580 Pro, 1.5CVT, and 1.8 CVT now cost Rs6.1m, Rs5.61m, and Rs5.806m, respectively, compared to Rs6.55m, Rs6.105m, and Rs6.256m previously.
The previous rates for the KO7 Humsafar and Pearl MT were Rs2.549m and Rs1.920m, respectively. The revised rates are Rs2.469m and Rs1.749m. After increasing the prices by Rs400,000 to Rs1.139m, Master Changan Motors had decreased the costs by Rs50,000-400,000.
The new prices for the Oshan X7 Comfort, FutureSense, and Alsvin Comfort MT, DCT, and Lumiere variants are Rs3.394m, Rs3.649m, and Rs3.844m, respectively. The Karavan MPV, Plus MPV, and Sherpa M9 now have new price tags of Rs2.419m, Rs2.569m, and Rs2.134m, respectively.