KARACHI: 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 manufacturers.
Customers were informed by the Pakistani Kia automaker that prices had only increased by 14% in July, as contrast to the 19–23% increase imposed by three major automakers. 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 an auto assembler, pressure is putting pressure on the Korean manufacturers to pass along the buyers’ relief at the increase in the rupee.
The Japanese assemblers’ price cuts thus far have not been as significant as the earlier, all-at-once, enormous rate increases.
Pak Suzuki raised costs by Rs314,000 to Rs661,000 while slashing them by Rs75,000 to Rs199,000. The rates were increased by Rs. 760,000 to Rs. 3.16 million by Indus Motor Company (IMC), but have since been decreased by Rs. 260,000 to Rs. 1.14 million. Honda Atlas Cars Limited increased its price by Rs785,000 to Rs1.45m, but gave customers a price break of Rs280,000–550,00.
