KIA slashes, Suzuki raises vehicle prices

Carmakers in Pakistan have taken opposing routes on pricing, as Kia has announced major temporary price reductions starting May 1, while Suzuki has raised rates across several of its car models.

Lucky Motor Corporation has dropped the prices of three Kia Sportage models. Data from reports indicates that the L Alpha is now priced at Rs8.499 million after a cut of Rs1 million. The L FWD has been reduced by Rs1.82 million to Rs9.999 million, while the L HEV sees the biggest drop of Rs1.851 million, bringing the price down to Rs10.999 million. According to the company, these cuts are temporary, but no end date has been announced.

Meanwhile, Suzuki has recently increased its prices for multiple variants, despite no major changes in taxes or duties on automobiles. The Swift GL MT now costs Rs4.416 million, up by Rs80,000. Cultus variants have also increased, with the VXR now costing Rs4.230 million after witnessing a staggering rise of Rs372,000. 

The Cultus VXL and AGS models have both gone up by Rs72,000 and are now priced at Rs4.316 million and Rs4.618 million respectively. The aforementioned price hikes were announced by the company on April 26 and followed earlier increases made by the company in February.

Suzuki's decision to raise prices in rapid succession could result in a major loss of market share. Given the price points, potential customers may consider opting for the Kia Picanto 1.0 AT, which has an on-road price tag of approximately Rs4 million. 

Moreover, with Kia offering sharp reductions on its expensive variants, the company could gain a stronger hold on the domestic automotive industry. According to reporters, overall production costs are falling amid stable exchange rates, and with the SBP slashing interest rates, the company’s profit margins may not take a hit, as a drop in prices is likely to boost sales volume.

The more accessible pricing may attract buyers who have held back on purchases in recent months amid affordability concerns. Moreover, the lower interest rates benefit not just automotive companies but also their customers, who can now purchase cars using more economical financing schemes.

In another development, Bolan Casting Ltd, which supplies parts to the tractor industry, has paused its production from April 28 to May 9. As per reports, the company cited a sharp drop in orders as the reason for the temporary shutdown.