The Price of New Cars in Pakistan is Likely to Rising soon.
ByShehryar Makhdoom | Published date:
Experts have concluded that vehicle prices will increase over the next few months due to rising raw material costs and increased freight costs. One of the leading news outlets reported that the Director of Sales and Marketing at Changan Pakistan, Syed Shabbiruddin, claimed that around 70 to 80 percent of the vehicles in the market are made of imported steel, which makes a significant impact on the price of cars in the local and international markets.
Prices of Motorcycles are Undergoing Changes.
He said that the price of motorcycles had increased because of the increase in the price of manufactured goods. The manufacturers were then forcing customers to pay more for it. Furthermore, he claimed that freight charges and raw materials expenses were increasing, which would likely lead to higher prices for cars from auto manufacturers.
Research analyst Taha Madani of BMA Capital Management Ltd. stated that demand for automobiles steadily rose over the last year. This increase may compensate for the growing steel price, as carmakers have seen revenue increase because of increasing vehicle sales.
Although he said that carmakers would probably sell more automobiles despite the already strong sales figures, he also asserted that they would hike the prices to improve their earnings.
Steel Sheets are Becoming More Costly.
JS International Capital Ltd., Waqas Ghani, reported that the price of steel sheets roll rose from Rs. 132,000 per tonne to Rs. 239,000 per tonne during the last year. He thought that steel prices would probably stay the same for quite a while and then fall again.
Zia-ul-Haq and Sons' Chief Operating Officer, Shaukat Qureshi, noted that before the epidemic, freight costs were $800 but are now $4000. Additionally, he claimed that port workers and shipping containers are in low supply and that this is a significant issue for overseas businesses.
The analysts all agreed that steel and transportation costs would raise automobiles in the foreseeable future.
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