Changan Pakistan has increased car prices for the second time since March – this time choosing to jack up prices across the board by Rs120,000. The reason the company is giving is increasing costs of steel and shipping.
After revealing the Alsvin sedan launch price in January this year, the Chinese carmaker increased the price of its two automatic variants by up to Rs101,000 just two months later in March.
The Alsvin 1.37L 5-speed manual transmission was initially priced at Rs2.2 million. It is now selling for Rs2.27 million. The 1.5L 5-speed dual-clutch automatic transmission was initially priced at Rs2.4 million and the top-of-the-line 1.5L Lumiere at Rs2.55 million. Their new prices are Rs2.52 million and Rs2.71 million.
The new prices of vans Karvaan Plus and Karvaan Standard are Rs1.66 million and Rs1.52 million after an increase of Rs120,000. The pickup truck M9 now costs Rs1.35 million after the price hike.
The price of the cars also went down last month, but that was due to a reduction in government duties and taxes.
Less than two months after car prices were slashed after a reduction in duties and taxes, companies in Pakistan have started jacking them up again with Changan Pakistan being the first one. Their excuse: raw material prices and freight charges have gone up.
“Around 70% to 80% of a typical passenger car is made up of some grade of imported steel,” said Syed Shabbiruddin, the director for sales and marketing at Changan Pakistan. “A car price is, therefore, highly sensitive to the price of steel and the exchange rate.”
If steel prices go up, car prices will inevitably increase, he said. In fact, even motorcycle producers recently passed on the burden to their consumers. Soon car companies will also have to raise vehicle prices because of rising steel prices and the increased cost of shipping, Shabbiruddin said less than a week before his company increased prices.