Saturday, 25 March 2023

Car Prices Increase in Pakistan

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.

Car Prices after Mini Budget
READ ALSO: Car Prices after Mini Budget

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:

VehicleAverage 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)684,542869,33327%
Suzuki Alto1,320,3331,495,3331,533,00016%
Suzuki Swift (Discontinued in 2021)1,345,4001,977,5002,060,00053%
Suzuki Cultus1,096,5001,858,3332,093,6672,232,000103%
Suzuki WagonR937,8891,582,5001,878,6672,003,333114%
Honda Atlas Cars Limited
Honda City1,705,3202,490,6672,980,4003,111,40082%
Honda Civic2,306,8403,882,3334,221,0004,540,00096%
Honda BR-V (Debuted in 2017)2,279,000 (at Launch)3,082,3333,486,0003,689,00061%
Toyota Indus Motor Company
Toyota Corolla1,992,3753,093,1113,640,0003,842,66793%
Toyota Yaris (Debuted in 2020)2,562,333 (at Launch)2,873,00012%
Toyota Hilux2,819,1254,747,3755,494,6257,688,750173%
Toyota Fortuner4,849,0008,324,0008,869,0009,936,000104%

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.

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