This is the first price hike from the manufacturer since Oct. 2019
Al-Haj FAW bumped its prices upwards on three of its best performing vehicles, the V2, the XP-V Van, and the Carrier pickup. The prices were increased by 35,000 rupees each. The price increase may be caused by the recent advance tax application on vehicles from the government which amounts to 25,000 rupees for filers and 50,000 rupees non-filers.
This is the first price increase by the manufacturer since October 2019. Car prices, in general, have been on the rise due to lower sales caused by the coronavirus and other economic issues. V2 is the bestselling product in Pakistan from the Chinese manufacturer. Its main rival is the Suzuki Swift, which is priced much higher with little extra features. The automaker has also recently announced it will be bringing the Bestune T77 SUV in Pakistan soon. Faw, however, did not delve into the details of the product that will be available in Pakistan.
Automobile prices on the rise
The prices of the automobiles in Pakistan have been on the rise for the last couple of years. Honda and Toyota particularly are raising prices of their vehicles several times a year. There are numerous factors behind these price hikes. For starters, the dollar has had an unprecedented jump in value against the Pakistan rupee. The cost of importing parts has gone up steeply. Taxes have also been increased in recent years. The economic slowdown prior to the coronavirus had greatly affected the sales of many manufacturers. Even the imported vehicles’ sales decline by over 80%. With COVID-19, the sales have further dwindled and manufacturers are trying to maintain their revenues.
However, last but certainly not the least, automakers have been charging exorbitant prices for fairly low-quality products. With fewer sales, they want to continue to maintain their high profits, and raising prices whenever an opportunity presents itself is the only way.