The automobile industry in Pakistan is bracing for a major shift as the federal government has increased the sales tax from 18% to 25% on locally manufactured vehicles that cost more than 4 million PKR.
Pak Suzuki has already increased the prices of its vehicles, including the Swift GLX CVT, which now costs over 5.4 million after the recent price hike. Other auto manufacturers are also expected to follow suit in the coming days.
The Head of Corporate Affairs at Pak Suzuki, Shafiq Ahmed Sheikh, has stated;
The increased costs of raw materials, accessories, and shipment/freight have made it difficult for Pak Suzuki to maintain the current selling prices.
Despite the price hike, the demand for hatchbacks, which are popular among the middle class, is expected to remain strong.
The automobile industry in Pakistan has made significant progress in recent years, and it is hoped that this trend will continue despite the challenges posed by the current economic climate.
