Pakistan Toyota & Suzuki Price 35,000 is up

[LianaLover]

hadd ho gai hai yaar. Ye to barhaye hi ja rahay hain prices.. But jab baqi sari cheezain costly ho rahi hain, to why not cars??

[Farhansa]

soon alto will be 1000k
mehran will be 700k

[lotus]

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[Massive_One]

kya alu, piaz, tamatar, aor murghi bhi yen ki waja se mehngi ho rahi hai ??? .... har sawal ka ek jawab "khapppppaaaaaaaay"

[khurem]

soon you'll see plenty of these idiots posting their new rides at PW

Guys, it's not people fault to buy at that high unreasonable prices, it's purely related to economics. I'm reproducing my comments from another similar thread:

That is also because of the monopoly. A country population of 180 million and annual car production of just 120,000? That is a very low figure and it is just due to the fact that the car supply in Pakistani market has been kept at very low levels, as compared to its reasonable demand in market size of 180 million.

This is the reason why people have to buy the cars, even when prices jump to an unbelievable level. Assemblers know that even when they increase the prices, the small number of cars that they produce will have to get sold.

People have to buy cars for their use, the needs (that a car serve) have to get fulfilled at whatever the price, as the alternatives are scarce, inefficient or expensive. So rather than blaming public that why they buy the cars at high prices, blame should be on the people (govt., assemblers, others) who have allowed this monopoly to operate in such a way that the local assembles will continue to benefit and competition is not allowed to flourish.

[khurem]

It's just a case of too many hands fetching the scarce number of goods.

Total goods (average number of cars) produced in a month = 12,000 (based on Annual sales of FY10). That is a fact.

Let's say manufacturers increase price by 50% on average!

If there are only 12,000 people in Pakistan who want to buy a car during the month of let's say September, then the increase in car prices will maybe affect their decision to purchase, and actual car sold will be let''s say 10,000 in that month and beyond.

However if there are a million people that have the need to buy a car of their own, then even if 988,000 decide NOT to buy the car at such a high unreasonable price, you just need 12,000 out of a million people who will buy those cars in that price to serve their need. Hence manufacturers not only are able to sell all those crap cars that they produce, they also get the 50% jump from the price increase.

Some serious demand/supply mismatch

[system]

with all the supply gap analysis , everyone should not forget the real facts.

THe fact is car assemblers have the right to increase the car prices to any limit. In fact limitless. Constituition of Pakistan and economic system of Pakistan ensures such protection. Now pls dont be offended on this statement. lets analyze.

The edible oil manufactureres have doubled the price of vegitabel oil in last 3 years, lentils prices have soared to three fold of the price that they had in last two years , the same way car manufacturers have increased prices. The most important price hike is in electricity bills. Governemnt itself is increasing the price many fold each month. So why car manufacturers should not increase the price.

We are living in capitalistic economy whereby the owner who owns any production means have the right to decide the price of its goods or service and increase whenever he wants.

Remember the price of mobilink sim in 2000 and now. Market conditions also dictate the price of goods and services . At the same time cartelization is also a phenomenon that takes place in capitalism. Look at Microsoft, windows is sold solely by Microsoft.So it decides its heavy price of O.S from consumers (except where piracy is legal like pakistan/India / China etc) across the world. Not only the price but each time the users are almost forced to buy a new version for no good reason and if you dont buy , the support for the old is withdrawn. Thus Microsoft became a billion dollar company in minimum time. Did any stop Microsoft. No ...none. So lets understand capitalism and its way of working and then you will come to know how you have to adjust yourself in this system (until that whole system is changed).

[khurem]

with all the supply gap analysis , everyone should not forget the real facts.

THe fact is car assemblers have the right to increase the car prices to any limit. In fact limitless. Constituition of Pakistan and economic system of Pakistan ensures such protection. Now pls dont be offended on this statement. lets analyze.

The edible oil manufactureres have doubled the price of vegitabel oil in last 3 years, lentils prices have soared to three fold of the price that they had in last two years , the same way car manufacturers have increased prices. The most important price hike is in electricity bills. Governemnt itself is increasing the price many fold each month. So why car manufacturers should not increase the price.

We are living in capitalistic economy whereby the owner who owns any production means have the right to decide the price of its goods or service and increase whenever he wants.

Remember the price of mobilink sim in 2000 and now. Market conditions also dictate the price of goods and services . At the same time cartelization is also a phenomenon that takes place in capitalism. Look at Microsoft, windows is sold solely by Microsoft.So it decides its heavy price of O.S from consumers (except where piracy is legal like pakistan/India / China etc) across the world. Not only the price but each time the users are almost forced to buy a new version for no good reason and if you dont buy , the support for the old is withdrawn. Thus Microsoft became a billion dollar company in minimum time. Did any stop Microsoft. No ...none. So lets understand capitalism and its way of working and then you will come to know how you have to adjust yourself in this system (until that whole system is changed).

You misunderstood the whole thing. The main crux of what I said is that people do not have choice, and they also can't do anything about price change. It will automatically get accepted due to the economic fact which is too many hands fetching small goods quantity.

Prices of mobilink sim changed only because of competition. Had competition not allowed in cellular industry as well, the prices would remain high. The reason car prices are so high is lack of competition and monopoly allowed by the regulators. We, the people, unfortunately can't do anything about it even if they want to.

[xs2Ahmed]

This is people's party vote dia tha na, now you get the fruits..

[khurem]

And by the way capitalism has nothing much to do with current car prices in Pak. Capitalism is all about meeting demand and supply to dictate the price. In Pakistan it is artificially set way above than the equilibirum price. Had real capitalism being implemented in car industry, Camry price would have been around 20 lac Rupees, almost similar level it is in Dubai and other countries. Under perfect capitalism, car supply will match car demand around the world to arrive at a price and there won't be such heavy discrepancy in car prices that we see between Pakistan with Dubai and other countries. That is the reason car prices do not fluctuate much among capitalist countries, apart from Pakistan.

If car prices are artificially high in one region, manufacturers will just increase their supply in that region, as margins are better over there, until the prices are matched globally. Untill of course the Government of Pak decide to implement taxes etc to artificially lift price to protect domestic players etc. This is considered market manipulation, which is considered completely against the concept of capitalism and free markets.

[system]

Real Capitalism is no where in the world. In USA , Governemnt subsidize wheat and other crops to allow big earnings to his farmers at the cost of tax payers money. Same is with India. Subsidies conflict with 'true' capitalism.

Reducing the price of mobilink sim is a result of competition but i mentioned it to reflect the hypocricy of state because it does not allowed same competition in auto sector. But it is part of capitalism too. Pakistan alone does not stop healthy competition in some sectors, other countries do this as well. E.g USA does not allow imports of medicines to 'protect' the made in USA medicines (a limited import allowed recently without compromising revenue benefits of pharmaceuticals manufacturers). This has deprived poor americans of adequate healthcare. But US governemnt dont bother.

If true capitalism is allowed in Pakistan , then Alcohol , pubs and all other such businesses shall grow alongside too. because true capitalism denies any religious restrictions on starting any business.

[sufiansaeed]

..Furthermore, lot of companies have contracts with Suzuki only...means their employees will get Suzuki cars as part of their employment package....I will soon be a victim of the same....i begged my management to consider Vitz or any other good japanese car of 1000cc but they simply refused....According to them "we are giving you 0 meter brand new car...why r u interested in used japanese car then...aarrgggghh :@"

+cultus has such cheap back lights now :@...Pakistani Auto industry will continue to increase prices...pity!!!

[imtiz_ahmed]

Their price hikes are justified as long as people are wholeheartedly brand loyal. They know that their customers are not going anywhere .

[Magnitude]

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[huzaifaa]

This is people's party vote dia tha na, now you get the fruits..

agree to u boss this is a fruit of that so called sympathy we had shown to byyyyyyyyyyyyyyyyyyy nazir khappy
still more then 2 year r lefted to get much more which we dont wish to hv

atleast previous gov was g8 in this sence 2000 to 2005 was g8 period for automobile industry prices was too good n new product n companies were lauched

in 2000 suzuki introduces cultus alto vxr after baleno
like kia sportage spectra classic were launched
hundai santro was there
coure
like then 2004 5 lancer optra etc were there but now bull s hit zoordari dont know how he get all these thing in his a sss a ss hole mother f ucker

at that time people still have little bit choice to select between atleast 3 or 4 of same category

yar think in india the number of companies of automobile are more then the number of different cars we have here by 3 companies hehehhee:(
its sad n tthought provoking moment

[nickatnite]

..Furthermore, lot of companies have contracts with Suzuki only...means their employees will get Suzuki cars as part of their employment package....

Wow!. That's cool. A lot of people in India will die for such a deal and will accept a Santro Xing or Alto even as long as they don't have to pay for it!

[shaddy]

plz quote the latest price of vxri cng in karachi now, website is not updated

[afnan_88]

pak suzuki hardly 10% imported parts use kerta hoga mehran me , to 10% per currency difference lena , total per kyo ,her cheez tu local made he is me

[khurem]

Wow!. That's cool. A lot of people in India will die for such a deal and will accept a Santro Xing or Alto even as long as they don't have to pay for it!

Well if an emplyee get's a car then quite obviously, his package is adjusted elsewhere in order to accomodate the car provision.

E.g if a person with certain knowledge, education and experience should get an average salary of Rs. 120,000 per month in the market, he may get a salary of 90,000 per month with a Suzuki Cultus. Ownership will remain with the company and employee may get the Cultus at let's say half its price after 5 years completion.

He may also choose not to take the company car and instead get 30,000 per month as car allowance. Either way, the benefit would be matched monetarily.

[nickatnite]

Well if an emplyee get's a car then quite obviously, his package is adjusted elsewhere in order to accomodate the car provision.

E.g if a person with certain knowledge, education and experience should get an average salary of Rs. 120,000 per month in the market, he may get a salary of 90,000 per month with a Suzuki Cultus. Ownership will remain with the company and employee may get the Cultus at let's say half its price after 5 years completion.

He may also choose not to take the company car and instead get 30,000 per month as car allowance. Either way, the benefit would be matched monetarily.

So, there is a catch. But no one gets a car as part of a salary package in India anymore. Gone are the ye olde days and ways here but handsome pay packages are the norm nowadays. Firms do however , negotiate discounts or price deals with car manufacturers for employees and fuel bills maybe reimbursed to a limit but that's about it. Thanx for the info.