Car prices to rise again very soon in Pakistan

Last time in the very beginning of August 2022, United States Dollar (USD) hit its top against Pakistani Rupee (PKR). At that time USD was valued at Rs 240.30 in transactions involving exchange of currency. By than almost all car manufacturers had increased their selling prices of Cars by a percentage starting from 14% to 25% in PKR. But later when International Monetary Fund (IMF) announced the confirmation of deal to resume the bailout plan, PKR again started rising in value to the point that it hit Rs. 113 against USD in Interbank at one point.

Now after Rupee Regained its value, most of the auto manufacturers with few exceptions reduced their prices to compensate. However, this reduction was not equal the previous increase but still they some reduction. And few companies like KIA and Hyundai did not reduce the price claiming that their previous increase was just 14% so they are not going with the reduction.

However, now from few days, again PKR is sitting at it lowest ever value, changing hands in Interbank at 140 to 140.3 or similar. Now again it is evident that auto manufacturers will very soon come up with a price hike. Also, they do not have any other choice than to the either reduce price or cut into their profit margins, as already few days back banks were opening Line of Credit (LC) at PKR Rs. 141 per USD, which may go even worse with the current bad economic situation due to political instability and disasters caused by floods across the country.

So, mark my words, a car price hike is coming soon, no matter what. As car manufacturers do have to import Completely Knocked Down (CKD) kits to manufacture new cars and they are only able to do that on hiked USD prices in Pakistani Rupee. Now it is just the matter of, who takes takes the lead in auto industry to increase their vehicle prices and all other companies will follow for sure.

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