The government of Pakistan has requested us to hold up the price increase, says notice of the company
KARACHI: Changan Pakistan, part of Master Group, has immediately suspended a price increase of Rs 120,000 on its all model cars in Pakistan. the decision has been taken on the directive of the government.
On Social Media, the company has notified the development to all authorised dealers on Friday.
“The government of Pakistan has requested us to hold up the price increase. Therefore, we are temporarily suspending the price increase of all Changan models until further notice,” the company said in a social media post.
In the same notice, the company said that the price hike was due to the freight cost rising multifold during the last couple of months.
“The container freight cost has increased from $800 to $4,000, which has forced us to reflect some portion of it in our increased retail price,” the notice added, requesting the government to help the sector by taking measures that reduce freight charges.
The statement clarified that deliveries of previously-booked vehicles will continue as per routine. However, the company has not yet given details over present or future bookings.
All automakers including Changan Pakistan had reduced car prices in July following various incentives and reduced tax rates announced by the government through the budget.
The incentives formed part of the new auto policy that envisions higher production of cars, and promotion of manufacturing through lower taxes.
However, a month later, Changan Pakistan announced that it will increase the prices of its entire lineup by Rs 120,000, a decision that was severely criticised by consumers and potential buyers. The company said that it was passing on the impact in freight costs.
Car prices in Pakistan have become more volatile in the past few years owing to substantial movement in the rupee. Auto manufacturers/assemblers, who are dependent on imports, have adjusted prices in tandem with the rupee-dollar parity, with delay in deliveries and inability to meet demand forming part of the problem facing the country’s auto sector.