The Pakistani car industry has grown exponentially with the arrival of several new car companies. Car Prices Increase in Pakistan in 2022 has become a major issue for car customers. While the competition has increased, the average prices of cars have gone up as well.
In October 2021, automakers took turns in jacking up prices as a result of local currency depreciation. These price hikes have driven vehicles beyond affordability for most people, but given the recent tax amendments from the government, it seems that the worst is yet to come.
According to the past 6-year data, the average price of vehicles has gone up from about Rs. 1.7 million to about Rs. 4 million, which equates to an increase of up to approximately Rs. 2.3 million or 135 percent since 2015.
The following table highlights Car Prices Increase in Pakistan and how much the prices of all popular vehicles and new car prices in Pakistan have increased since 2015:
|Vehicle||Average Price 2015 (PKR)||Average Price 2019 (PKR)||Average Price 2021 (PKR)||Average Price 2022 (PKR)||Overall %age Increase|
|Pak Suzuki Motor Company|
|Suzuki Mehran (Discontinued in 2019)||684,542||869,333||–||–||27%|
|Suzuki Swift (Discontinued in 2021)||1,345,400||1,977,500||2,060,000||–||53%|
|Honda Atlas Cars Limited|
|Honda BR-V (Debuted in 2017)||2,279,000 (at Launch)||3,082,333||3,486,000||3,689,000||61%|
|Toyota Indus Motor Company|
|Toyota Yaris (Debuted in 2020)||–||–||2,562,333 (at Launch)||2,873,000||12%|
Up until 2019, the price of vehicles remained quite stable, but afterward, they went up significantly. The companies cited the devaluation of the Pakistani Rupee (PKR) against the US Dollar (USD) as the main reason for these hikes. However, the general consensus is that the price raises were much greater than Rupee’s depreciation against the USD.
The car industry is likely to witness a fair amount of turbulence in the coming days due to the impending price hikes, following the imposition of various taxes on both, locally manufactured, and imported cars.
However, the demand for new cars will likely remain the same among the masses due to several new launches expected this year. With that argument, it remains to be seen as to whether or not car sales will be hindered by the upcoming Car Prices Increase in Pakistan.