Sunday, March 28, 2010

Pak-Suzuki raises car prices by Rs15,000















 KARACHI: The Pak-Suzuki Motor Company Limited again raised prices of various models from Rs10,000 to 15,000 on Saturday.
On March 3, the company had raised prices of its newly-introduced Swift car by Rs50,000 to Rs1,049,000 from Rs999,999.

The new price of Suzuki Mehran VXR would be Rs529,000 as compared to Rs519,000 while Alto VXR rate will be Rs679,000 as compared to Rs667,000.

Cultus will be available at Rs917,000 as compared to Rs902,000. Ravi pick-up will carry a price tag of Rs504,000 as compared to Rs494,000 while Bolan will be sold at Rs624,000 as against Rs614,000.

In the absence of any check on car prices by the government, car assemblers are enjoying a free hand, and they link prices by Yen appreciation against the rupee and other currencies, which is pushing up prices of imported parts.

All-Pakistan Motor Dealers Association chairman H M Shahzad has asked the government to take action against car makers’ cartel which had been jacking up rates persistently.

He said premium on cars is still going on despite increase in production of cars which means that assemblers have kept the demand and supply gap in their hands.

He added that the government is just doing a routine exercise of calling a meeting with assemblers but it has never cross-checked whether the price-hike is genuine or was arbitrary in view of surging demand.

He urged the government to provide incentives on import of used cars so that customers could get a wide choice and assemblers’ monopoly is broken.

The assemblers have also introduced new imported cars, jeeps and sports utility vehicles. There are reports that some assemblers are taking full payment from customers and are delaying release of imported vehicles.

A customer, who asked not be named, said he had paid almost full amount to an authorised dealer of a leading car maker who assured that delivery would be made in 15-20 days. But later the dealer failed to come up to his expectation, and now he says that it would be delivered in August.

It means that the assembler is getting interest from depositing the payment in the bank.

On Feb 23, Indus Motor Company (IMC), the makers of Toyota Corolla cars, had raised prices of Corolla Xli by Rs20,000, GLi by Rs30,000 and above 1,800cc and other variants. On March 20, makers of Honda cars had surged the prices by Rs20,000-35,000.

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