Dollar reaches record high of 134 rupees

Dollar increase

Since the beginning of 2018, the exchange rate kept fluctuating from high to low and back to high again. Now, the Pakistani rupee has fallen to 134 rupees; its lowest in the history.

As the rupee weakens with respect to the US dollar, it jolts the entire economy, and the local automotive industry is one of the sectors to get affected by the rise in the dollar.

As we’re an import based economy, the rising dollar means the increase in the import cost, making a dent in the import sector. Other than this, it prompts fuel inflation affecting every sector from food, transportation to the auto sector and more.

Just like the other sectors, the effect of the fallen rupees is felt when the local automakers increase the car prices following a depreciation in the rupee.

According to them, the rising dollar affects the imports of parts. The parts that are imported would cost more, increasing the cost to manufacture thus, automakers are left with no choice but to increase the ex-factory prices.

Read More: Dollar fluctuations spark interest in economy cars

From 110 rupees in January 2018 to 134 rupees in October, the exchange rate has increased by 21% in total. Keeping that in mind, we have done a small analysis of how the car prices went up as the dollar increased from January, followed by an estimation of the car prices till December 2018, in case, the local automakers hike the prices once again.

Toyota-Cars2Suzuki-Cars4

Faw-Cars3

Dollar

The impact of rupee depreciation is undeniable, and it will affect the local industry in one way or the other; presently, the auto sector is already facing the downfall in car sales due to the ban imposed on the non-filers. So, let’s see where the sales and the price graph go if the local automakers announce to increase the car prices amidst the falling rupee.


Notable Replies

  1. Just summarize in one line,
    Cars ki prices ek dfa phir upar janay wali hain

  2. ALLAH O Akbar! Sometimes, I do not understand k almost Harr Blog, harr Post mein ye likhna; aur Non-Filers ka Rona rouna; zruri hota hai? Pakwheels should encourage people to become Filers!

    Kash koi iss p b Blog bnayeye, ya aesay b likhay k:

    The auto sector is facing downfall in car sales due to ever decreasing quality, ever increasing prices, lack of introducing new models at par with rest of the world, along with lack of features! If the prices go up again, the cars sales are going to decline further! Automobiles assemblers should increase quality of their products, introduce some new models and features, so that price hikes gets somewhat justified!

    Tax choori, money laundering, luut khasuut, import / export deficit, last Govt.s ki galat policies, etc. ki wajha sey aaj mulk k ye hala'at ho gye hain, aur subsay zyada suffer aam aadmi karta hai. I fear, Dollar is gonna rise further!

  3. Before the pseudo economists come in and comment on this. The economy is in tatters and IMF bailout package was the last option on the list and after exhausting all the other options they had to go to IMF.

  4. hash4u says:

    this is much beyond cars and fuel prices
    even a slice of bread or a single egg is going to get expensive
    very sad common man pays the price always

  5. When I click on the censored text, it shows the text again. Is it only me who can see the text or it would appear to everyone ?

    If it appears to all, then there's no use of such censor and closing such thread would be better.

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