KARACHI: Pak Suzuki Motor Company Limited (PSMCL) on Wednesday jacked up prices by Rs10,000 to Rs20,000 on different models.

The new price of Suzuki Mehran VX and VXR is Rs620,000 and Rs678,000. Ravi, Bolan, Cargo van, Cultus, Swift DLX and Swift DX now cost Rs647,000, Rs700,000, Rs676,000, Rs1.044 million, Rs1.302 million and Rs1.221 million.

In 2013, the local assemblers increased the prices three to four times despite the fact that the rupee gained 12.6 per cent against the Japanese yen making parts import cheaper. However, according to an analyst at JS Research, the rupee appreciated by 9pc against yen from October to December 2013. Similarly, the local currency had also gained 3pc versus the US dollar over the last one month.

Pak Suzuki enhanced prices on January 2013 by Rs20,000 and on July 22 the prices were raised again by a minimum of Rs5,000 to a maximum of Rs70,000.

In September 2013, the company again came out with price rise by Rs10,000-20,000. The company made price surge by 3.15pc to 6.09pc, or from Rs35,000 to Rs140,000, during January to December 2013 on locally made and imported vehicles.

Indus Motor Company (IMC) announced price increase thrice which was raised between 1.8pc to 23.52pc for different products in the last one year that translates into an increase of Rs30,000 to Rs586,500 for cars and higher engine power vehicles.

Honda Atlas Motors also pushed up prices by 3.34pc to 41.33pc, an increase of Rs55,000 to Rs400,000, in the same period on locally made and imported vehicles.

All Pakistan Motor Dealers Association (APMDA) chairman H.M. Shahzad said the assemblers usually push up prices instantly whenever yen appreciates against the rupee but never pass on the impact to consumers when it is the other way round.

“It suggests that the assemblers’ claim of achieving higher localisation of parts is just a hollow slogan and they are still dependent on imported parts,” he said.

Shahzad urged the government to find out why assemblers have never shared the benefit of rupee’s gain against the yen to the end users.

He said that assemblers are basically cashing the increased demand of their vehicles after sharp drop in the arrival of used cars for the last few months and they also hope improved sales for the next six months.

Muhammad Tahir Saeed of Top Line Securities said local car assemblers sales (including LCVs, Vans and Jeeps) during the first half (July-December) of the current fiscal year may reach around 60,900 units, up 5.8pc compared to 57,540 units in the corresponding period of the previous fiscal year.

On monthly basis, locally manufactured car sales may decline by 11.3pc to 8,500 units in December 2013 compared to 9,588 units in November 2013 due to year-end phenomenon as buyer preferred buying New Year model car. On year-on-year basis, sales may remain slightly down by 0.7pc compared to 8,448 units in December 2012.