Lucky Motors hike KIA car prices
Business
Vehicle sales dropped 36% to 10,867 units in January, Pakistan Automobile Manufacturers Association
LAHORE (Web Desk) - Lucky Motor Company (LMC) increased the cost of its automobiles to reflect the upcoming rise in the sales tax rate which will take effect for reservations made starting on February 14.
The company stated in a notification that the rise was brought on by the SRO 129(1)/2023 which was issued on February 14, 2023 eventually to raise the sales tax rate from 17 percent to 18 percent.
The cost of the high end KIA Carnival increased by Rs129,000 to Rs15.129 million while the Picanto MT model experienced a price hike of Rs28,000 to Rs3.228 million.
Nearly all auto and motorbike manufacturers have increased prices many times in less than two months. The third price rise since the start of 2023 was recently announced by Pak Suzuki, Indus Motor Company and Honda Atlas Cars. Increases were also announced earlier this year by Lucky Motor Company and Hyundai Nishat Motor.
According to experts the auto industry will experience a decline in sales in 2023 as a result of rising automobile prices and the country's declining purchasing power due to historically high inflation.
According to figures supplied by the Pakistan Automobile Manufacturers Association (PAMA) the sales of vehicle in Pakistan dropped 36 percent month-over-month to 10,867 units in January 2023 marking the lowest level since June 2020. Car sales decreased 47 percent year over year.
