Brace yourself as car prices in the country might surge even further, hinted CEO Indus Motor Company, Ali Asghar Jamali.
The exchange rate of rupee against the dollar is at PKR 127.75, as recorded on Monday, 16th July 2018. Whenever the local automakers increase the prices of their vehicles, the first reason they give is the rupee devaluation against the dollar, which leads to the increased rates of the cars. So, keeping this trend in view, it is safe to say that the prices of cars will surge even further.
While talking to the media, CEO Indus Motor Company, Ali Asghar Jamali hinted at price hike as he said that if the recent rupee depreciation remained as it is now, then it would certainly affect all the things in the country.
It is important to mention here that from January 2018, until now the rupee has devalued against the dollar to PKR 17.
Almost all the local automakers, this year, have already soared the prices of their vehicles 3 to 4 times, so it wouldn’t come as a surprise if they change the prices again.
Furthermore, it is to be noted here that the sales of cars in June 2018 declined for the second time this year and now due to this depreciation of rupee the car sales might drop again. Other than the rupee devaluation government’s decision to bare non-filers from buying vehicles is also the reason for the major drop in car sales in June 2018.
Read Also: Car sales decline by 14% for the second month in a row
The Insight Securities Head of Research, Mr Zeeshan Afzal while talking to Express Tribune said that the devaluation of rupee would have a greater impact on the prices of imported vehicles compared to locally produced cars. Looking at the booking orders, it seems that now the prices might not increase, however, there will come a time when the consumers will have difficulty buying new vehicles due to the massive price increase.
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