Pak Suzuki Increases Motorcycle Prices Against Due To Free Fall Of Rupee

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Pak Suzuki increases motorcycle prices against due to free fall of rupee

The company issues notification to the dealers and announces that new prices will be effective from May 9 and will remain the same until further notice.

LAHORE: (UrduPoint/Pakistan Point News-May 8th, 2023) Pak Suzuki Motors, one of the prominent players in Pakistan's two-wheeler segment, on Monday increased motorcycle prices in response to the continuing devaluation of the Pakistani rupee.

In a notification to its dealers, the company announced that new prices would be effective from May 9 and would remain the same until further notice. The new prices will include the ex-factory product price and freight charges.

The GD110s rate has been hiked to Rs 335,000, GS150 to Rs 364,000, GSX125 to Rs 488,000, GR150 to Rs 521,000, and GW250JP to Rs 1.04 million. The company has warned that these prices are subject to change without notice, and customers will be charged any applicable government tax at the time of delivery.

The auto industry in Pakistan, which relies heavily on imports, is currently facing a crisis due to the State Bank of Pakistan's restrictions on opening letters of credit after the rupee's depreciation. Industries are struggling to maintain operations while the country's reserves remain low. These limitations have made it difficult for businesses to purchase necessary imports, resulting in production and supply chain disruption.

Atlas Honda, Pakistan's largest player in the two-wheeler segment in terms of market share, has increased motorcycle prices for the fourth time this year. The most recent hike has led to a cost increase of Rs 5,000-15,000. The surge in prices has been attributed to the ongoing devaluation of the Pakistani rupee, which has made imports more expensive. As a result, companies are passing the increased costs onto their customers.

The increase in prices could have a detrimental effect on sales, especially among lower-income individuals who may struggle to afford the increased cost of transportation. The automobile industry in Pakistan has been struggling for some time, and the recent price hikes pose yet another challenge for the industry to overcome. In addition, the country's economy has been adversely affected by the COVID-19 pandemic and the resulting lockdowns, which have led to reduced business activity and a slump in demand.

Pakistan's auto industry is currently grappling with the impact of a depreciating Currency, restrictions on imports, and COVID-19-related restrictions. As a result, companies such as Pak Suzuki Motors and Atlas Honda have raised their motorcycle prices, which could lead to reduced sales and further economic difficulties for the country.

Abdullah Hussain

Abdullah Hussain is a staff member who writes on politics, human rights, social issues and climate change.