Since the start of this week, the dollar rate in Pakistan has come down significantly. The data shows that on September 22, the dollar was at an all-time high against the Pakistani rupee at Rs. 239.34 in the interbank. However, the news of Ishaq Dar becoming the new finance minister positively impacted and stopped the rupee’s free fall. Since Friday, the dollar rate has dropped by almost Rs. 9, reaching Rs. Rs231.9. And this is a good news as it will ease the pressure on PKR. And with that, a lot of people have asked us whether the car prices in Pakistan would come down too. Consumers are eagerly waiting for the car prices to come down. So, we are here with the answer.
We Don’t Think So
We think that the car prices will not come down as yet. The primary reason is that the situation of the market is still not stable because the downward trend of dollar is because of a news. We have to wait for a few weeks or even a couple of months to see whether the dollar rate vs. PKR remains stable. If you remember, the rupee performed very well against the dollar about a month ago, coming down to almost Rs. 212 from the same Rs. 240 due to an agreement with International Monetary Fund (IMF).
However, the relief proved to be temporary, and the dollar again started its fresh flight reaching Rs. 240. So, the uncertainty is still there, and like others, the auto industry is also observing the situation very closely, and once the situation is stable for a significant period of time, then car companies will take a decision on it.
If you remember, all the automakers increased their prices with a jump in dollar rate in August. As per a report by Ismail Iqbal Securities, the companies had increased their prices by 20% on average. Meanwhile, the Pakistani rupee depreciated by 21% in June and July 2022. So, it means the prices were passed-on almost according to rupee devaluation. The report further said that sedans, including Toyota Corolla & Yaris and Honda Civic & City, had shown the biggest jumps, while the percentage of price hikes by Hyundai and Kia were on the lower side, i.e., 13% and 15%, respectively.
The lower percentages by the new entrants are mainly because of the concessions they got under Pakistan’s first auto policy 2016-2021.
Biggest Price Hike
Toyota Corolla Altis observed the biggest price jump as:
- Corolla Altis 1.8 CVT saw a price jump of 26.2%
- Corolla 1.8 Grande CVT marked a hike of 26.5%
- And the price of Corolla Altis Grande CVT 1.8 (Black Interior) is increased by 26.3%
Meanwhile, Toyota Fortuner saw a jump of around 25%.
And if we talk about Honda price hikes, we will see an average hike of 24% on all cars. Coming to the last player in Big3, Pak Suzuki increased the rates at an average of 23%.
Lowest Price Hike
The lowest percentage of price hikes has been seen for Kia Stonic, which saw a jump of only 2.6%. The average percentage of price hikes of Kia is around 15%. Meanwhile, Hyundai has also hiked the prices by an average of 15% for all of its cars. Hyundai Sonata has seen the lowest jump, with 8.3%.
Do you see a decline in car prices in Pakistan in the coming days? Please share your thoughts in the comments section.
