The company has to adjust its prices for the devaluation of the rupee
Suzuki’s Wagon variants will cost Rs40,000 more from today (November 1), as Pak Suzuki Motors has increased prices of its cars to adjust for the depreciation of the Pakistani rupee.
In a notification to Suzuki dealers, the Japanese automaker increased prices of all its cars by Rs40,000. This means the 1,000cc Wagon VXL will now cost Rs1.27 million, up from Rs1.23 million. Similarly, top-of-the-line Cultus and Swift variants will now cost Rs1.5 million and Rs1.65 million respectively, up from Rs1.4 million and Rs1.61 million.
The development comes after Indus Motor Company, the makers of Toyota Corolla, and Honda Cars increased their prices to adjust for the recent episode of rupee depreciation, which has increased their costs.
Since these automakers import nearly 70% of their parts and pay for raw materials in dollars, any depreciation in the rupee adds to their cost, which is then passed on to the consumers in the form of a price increase. This is the fourth time Suzuki has increased its car prices this year.
The Pakistani rupee has depreciated by more than 25% against the US dollar since early December 2017 when one dollar was worth Rs105. The dollar closed at Rs132.6 in the interbank market on October 31.