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Car maker cuts prices up to Rs55,000
KARACHI, April 17: A leading car assembler, with 50 per cent market share, has finally reduced its prices by Rs2,000 to Rs55,000 aimed to boost falling sales amid highly depressed demand of locally-made automobiles.
The new prices by Pak Suzuki Motor Company Limited (PSMCL) will be effective from April 20, 2009.
Like other assemblers, Pak Suzuki had pushed up the rates substantially in 2008 and also early this year several times due to trend of appreciation of Japanese yen against the rupee which pushed up the cost of completely knocked down kits (CKD) followed by rising steel prices.
However, the assemblers claimed that they had not fully passed on the impact of rising cost of production to the consumers and absorbed it on their own.
Steel prices had started falling from November and December 2008 followed by massive cut announced by the Pakistan Steel. But, the assemblers had so far still reluctant to cut prices saying they had procured raw materials (either imported or locally made) at higher rates before November 2008.
It is not clear whether other assemblers, who also facing low sales problem, will follow suit or keep prices high. Pak Suzuki had made the last price increase in January 2009 by Rs40,00070,000.
Shafiq Ahmed Shaikh, spokesperson of the PSMCL, said that the price on various Mehran models had been cut by Rs14,000 Now the Mehran VX, VXR, VX CNG and VXR CNG would be available at Rs433,000, Rs480,000, Rs479,000 and Rs525,000.
Attributing the decline in prices to the falling sheet metal prices, he said the price on various Alto 1000cc model had been reduced by Rs36,000. Alto VX, VX CNG, VXR and VXR CNG would now carry price tags of Rs540,000, Rs621,000, Rs617,000 and Rs669,000, respectively.
After a slash of Rs50,000, the Cultus VXR, VXR CNG and VXL would be available at Rs787,000, Rs829,000 and Rs850,000 respectively. However, the price of VXL CNG had been slashed by Rs55,000 to Rs899,000.
On Bolan, the company offered Rs14,000 relief and now Bolan Standard, GL Standard CNG and GL CNG would be available at Rs497,000, Rs555,000, Rs549,000 and Rs606,000. The prices of Ravi Standard and CNG models had been cut by Rs7,000 to Rs441,000 and Rs489,000 respectively.
The price of Liana 1.3 Petrol had been reduced by only Rs2,000 to Rs999,000.
Suzuki Liana sale suffered a heavy fall of 72.4 per cent to 668 units from 2,420 units, while sale of Suzuki Alto bottomed out by 63.6 per cent to 4,970 units in July-March 2008-2009 from 13,685 units in July-March 2007-2008.
Sale of Suzuki Cultus and Suzuki Mehran fell by 62.43 per cent and 62 per cent to 7,266 units and 10,187 units as compared to 19,342 units and 26,675 units respectively.
karachi, april 17: a leading car assembler, with 50 per cent market share, has finally reduced its prices by rs2,000 to rs55,000 aimed to boost falling sales amid highly depressed demand of lo- cally-made automobiles. the new prices by pak suzuki motor company limited (psmcl) will be effective from april 20, 2009. like other assemblers, pak suzuki had pushed up the rates substantially in 2008 and also early this year several times due to trend of appreciation of japanese yen against the rupee which pushed up the cost of com- pletely knocked down kits (ckd) followed by rising steel prices. however, the assemblers claimed that they had not fully passed on the impact of rising cost of production to the consum- ers and absorbed it on their own. steel prices had started falling from november and december 2008 followed by massive cut an- nounced by the pakistan steel. but, the assemblers had so far still reluctant to cut prices saying they had procured raw materials (either imported or locally made) at higher rates before november 2008. it is not clear whether other as- semblers, who also facing low sales problem, will follow suit or keep prices high. pak suzuki had made the last price increase in january 2009 by rs40,000- 70,000. shafiq ahmed shaikh, spokes- person of the psmcl, said that the price on various mehran models had been cut by rs14,000 now the mehran vx, vxr, vx cng and vxr cng would be available at rs433,000, rs480,000, rs479,000 and rs525,000. attributing the decline in pri- ces to the falling sheet metal pri- ces, he said the price on various alto 1000cc model had been re- duced by rs36,000. alto vx, vx cng, vxr and vxr cng would now carry price tags of rs540,000, rs621,000, rs617,000 and rs669,000, respectively. after a slash of rs50,000, the cultus vxr, vxr cng and vxl would be available at rs787,000, rs829,000 and rs850,000 respec- tively. however, the price of vxl cng had been slashed by rs55,000 to rs899,000. on bolan, the company offered rs14,000 relief and now bolan standard, gl standard cng and gl cng would be available at rs497,000, rs555,000, rs549,000 and rs606,000. the prices of ravi standard and cng models had been cut by rs7,000 to rs441,000 and rs489,000 respec- tively. the price of liana 1.3 petrol had been reduced by only rs2,000 to rs999,000. suzuki liana sale suffered a heavy fall of 72.4 per cent to 668 units from 2,420 units, while sale of suzuki alto bottomed out by 63.6 per cent to 4,970 units in july-march 2008-2009 from 13,685 units in july-march 2007-2008. sale of suzuki cultus and suzuki mehran fell by 62.43 per cent and 62 per cent to 7,266 units and 10,187 units as com- pared to 19,342 units and 26,675 units respectively.
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