The changing value of the dollar and the reputation of the rupee in Pakistan have hurt a number of sectors, making formerly accessible automobiles unaffordable for the middle class. Even motorbikes, a popular form of mobility for the common man, saw price increases.
Unexpectedly, the ongoing decrease in the value of the dollar over the past month has started to benefit the sector. Taking advantage of increasing rupee value, Kia Lucky Motors, one of the top automakers in the nation, reduced the prices of its vehicles in Pakistan.
Responding to the recent rupee appreciation, Kiya Motors has announced substantial price reductions ranging from Rs 100,000 to Rs 500,000 on several of its models, effective from October 6. This decision aims to pass on the benefits of the rupee’s increased value against the dollar to customers.
The Kiya Motor’s Picanto model now costs Rs 38,50,000, reflecting a price reduction of Rs 100,000, whereas, the Sportage model is priced at Rs 8.4 million, down by Rs 150,000.
On the other hand, the Sportage Limited Edition has seen a price cut of Rs 350,000, bringing its new price to Rs 9.3 million, while the Sorento model, with a substantial price drop of Rs 500,000, is now available for Rs 10.3 million.
Although just one auto company has lowered car rates at the moment, it is expected that more companies will do the same in the near future. The trajectory of the dollar’s value in the market will have a significant impact on how much prices will decline. Market participants will closely monitor currency fluctuations to see whether more price cuts in the automobile sector are possible.
Prior to June, there was a major output decline in the motorcycle sector, which may be ascribed to the strengthening currency and rising gasoline costs. The sector is prepared for prospective improvements, nevertheless, given the current trend of a constant or declining dollar value during the previous month. Motorcycle costs are predicted to fall if this advantageous situation continues, although production levels might rise as a result of the better market circumstances.
