Pak Suzuki Motor Company Ltd (PSMCL) has increased the prices of its various car models by up to Rs120,000, despite the stability of the rupee against the dollar for over a year.

According to a circular issued by the company on Monday, the prices of Alto VXR MT, VXR AGS, and VXL AGS have been raised to Rs2.827 million, Rs2.989m, and Rs3.240m, from their previous rates of Rs2.707m, Rs2.894m, and Rs3.045m, marking an increase between Rs95,000 and Rs120,000.

Similarly, the price of the Suzuki Ravi, a model in production for over three decades, has been increased by Rs100,000, bringing it to Rs1.956m from Rs1.856m.

The company attributed the price hike in all variants of the Alto to "upgradation to meet customer expectations," adding that these improvements enhance safety and comfort, ensuring the product remains competitive in terms of quality and reliability.

The increase comes at a time when car demand typically rises ahead of Eidul Fitr. Suzuki Alto 660 has witnessed strong sales during the first seven months of FY25, with 24,633 units sold, compared to 16,388 units in the same period last year. The Alto remains a preferred choice for auto financing, benefiting from the State Bank of Pakistan’s Rs3 million financing cap.

Pak Suzuki also recorded a surge in sales of the Ravi model, selling 3,177 units during July-January FY25, up from 1,733 units in the corresponding period last year.

Despite the recent trend of price discounts by some assemblers to attract buyers amid falling interest rates, the return of price hikes in the automobile sector signals renewed challenges for consumers.