KARACHI – Pak Suzuki Motor Company is all set to raise car prices in therange of Rs20,000 to Rs30,000. According to Suzuki dealers, the companywill increase car prices from Friday, which was also confirmed by a companyofficial.

The reason given by the Suzuki official for the third price increase in2018 was the same – the weakening Pakistani rupee. Previously, Suzuki hadincreased prices in January and March this year following rupee’sdepreciation.

Although the company official did not disclose prices of which cars will beincreased, a Suzuki dealer said the market was expecting hike in almost allvariants.

Meanwhile, there were apprehensions in the auto industry that demand wouldfall after the government put restrictions on new vehicle purchase bynon-filers of income tax returns. Reports suggest roughly half of the carbuyers are non-filers.

Existing auto industry players – Suzuki, Honda and Toyota that havedominated Pakistan’s market for decades – will face tough competition fromnew carmakers that will enter Pakistan’s market soon.

Nissan, Kia, Hyundai, Renault and United Motors are expected to roll outtheir cars in the next couple of years.

Moreover, according to an estimate of a research analyst, 40% of car salestake place through auto financing in Pakistan and a recent increase of 50basis points in interest rate by the State Bank may have a slight impact oncar sales.

The analyst, who asked not to be named, said existing carmakers had room toincrease car prices for the next one year as production by the new entrantswas expected to begin from June next year. “I don’t think price increasewill affect sales of current players for the next one year. They areselling 100% of what they produce,” the analyst commented.

He added that after the government put restrictions on the import of usedcars in December 2017, sales of Suzuki cars, especially WagonR, surgedimmediately. As a consequence, Suzuki was forced to ask dealers to stoptaking orders for some time in order to avoid late deliveries.