Due to numerous production halts and price increases, 2022 was a turbulent year for the automobile industry.
Previously, such devastating price increases occurred in 2018 as a result of the drastic devaluation of the local currency.
Then, in October 2021, automakers took turns raising prices in response to the Pakistani Rupee’s further depreciation.
Then, after a few months of relative calm in the industry, a sudden regime change occurred in 2022, further depreciating the local currency and resulting in another round of major price increases.
These increases have pushed vehicles out of most people’s price ranges, but given the recent economic downturn, it appears that the worst is yet to come.
According to autojournal.pk, the average price of a vehicle has risen by up to Rs. 2 million, or 38%. Here’s how much each automaker increased average car prices in 2022:
|1) Toyota Indus Motor Company (IMC)||2,027,580||38%|
|2) Al-Haj Automotive (Proton)||1,315,000||37%|
|3) Master Changan Motors Limited (MCML)||936,000||32%|
|4) Pak Suzuki Motor Company (PSMC)||573,730||30%|
|5) Honda Atlas Cars Limited (HACL)||1,125,330||30%|
|6) United Motors||370,000||29%|
|7) Regal Automobile (Prince-DFSK)||971,500||25%|
|8) Kia Lucky Motors Corporation (KLMC)||1,168,750||23%|
|9) Ghandhara Nissan Limited (GNL-Chery)||1,251,000||22%|
|10) Hyundai Nishat Motors Private Limited (HNMPL)||1,098,430||20%|
|11) Peugeot Luck Motors Corporation (PLMC)||200,000||4%|
With 2023 approaching, the local auto industry is buzzing with rumours of another round of price increases.
The most recent price increase saga occurred in July of last year, following a massive US dollar (USD) exchange rate hike, when it reached Rs. 240 per USD. Given the recent depreciation of the Pakistani rupiah against the US dollar, history is likely to repeat itself soon.
Toyota Indus Motor Company (IMC) recently raised the prices of some of its vehicles. According to recent reports, the frequent production cuts and rising operational costs will almost certainly result in another round of price increases.
Revenues have also fallen, which the automakers will most likely try to restore by increasing their margins. With these developments, both automakers and car buyers should brace themselves for a rocky 2023.
To read our blog on “Here’s how much Toyota, Honda, and Suzuki raised car prices 2022,” click here