As the government has “other priorities,” assemblers make a profit.

As the government deals with political and economic issues, auto manufacturers are maximizing their profits by increasing vehicle costs.

On Friday, Indus Motor Company (IMC) became the third company to increase prices by between Rs590,000 and Rs3.16 million for various models, citing the devaluation of the rupee, an increase in taxes and duties including the capital value tax (CVT), rising raw material prices, and increasing transportation costs.

By suspending vehicle bookings on May 18 due to a lack of parts caused by restrictions on opening letters of credit (LCs), a volatile currency rate, and the company’s inability to maintain timely vehicle delivery, the company stated that “the order intake is paused until further notice.”

There were claims that the latest Economic Coordination Committee meeting had eliminated the conditions on Letters of Credit. However, auto assemblers stated that the restriction still exists, and the SBP is granting a particular quota for parts and kits imports to keep the assembly line moving.

Indus Motor raises prices by up to Rs3.16 million.

Corolla 1.6 MT, AT, and AT UPSPEC versions now cost Rs4.899m, Rs5.139m, and Rs5.639m, respectively, while 1.8CVT, CVTSR, and CVTSR Black models now cost Rs6.679m, Rs6.149m, and Rs6.189m, respectively.

Yaris 13MT, CVT, HMT, and HCVT now cost Rs3.799m, Rs4.039m, Rs3.999m, and Rs4.209m, respectively. The Yaris 1.5MT and 1.5CVT are Rs4.309m and Rs4.569m. The REVO GMT, GAT, VAT, and VAT ROCCO prices are Rs9.819m, Rs10.299m, Rs11.349m, and Rs11.999m, respectively.

Fortuner LO Petrol, High Petrol, Diesel, and Diesel Legender now cost Rs12.489 million, Rs14.279 million, Rs15.069 million, and Rs15.839 million, respectively.

IMC notified its dealers that these prices are indicative and provisional, subject to change, and should not be considered final.

The pricing effective at the time of delivery shall remain in effect.

Honda Atlas Cars Ltd (HACL) has alerted its dealers of a probable price increase of Rs785,000 to Rs1.450 million on July 30 for the Honda City, Civic, and BR-V.

Before IMC and HACL, Kia Lucky Motor Corporation was the first to pass on the effects of the exchange rate and high taxes and tariffs to consumers by increasing prices by up to Rs1.1m.

Motorcycles will cost more.

N.J. Auto Industries advised its dealers of an Rs5,000-20,000 price increase for 70cc-250cc Super Power models, beginning August 5, due to rising raw material and utility costs. On July 27, the business also increased the price of the SP100cc Awami motorcycle by Rs5,000.

On August 5, DS Motors Private Ltd will increase the price of its 70-100cc motorcycles by Rs5,000.