Pak Suzuki has announced to hike its car prices by up to Rs180,000 effective from March 1, amid inflation and an increase in overhead expenses, Business Recorder reported.

The company has shared new rates with its authorised dealers, showing the price surge in the range of Rs80,000 to Rs180,000.

Suzuki Cultus AGS recorded an increase of Rs180,000 and will be sold at Rs4.546 million.

Alto’s top of the line model Alto VXL AGS will now cost Rs3.045 million, after its price was hiked by Rs110,000.

“Keeping in view inflation, increased overhead expenses, increased international raw material and accessories cost, and shipment/freight charges, it became difficult for Pak Suzuki to hold the prices,” Business Recorder quoted Head of Corporate Affairs Shafiq Ahmed Shaikh as saying.

Due to the Red Sea matter it is a very critical time for Pak Suzuki to control prices due to a significant increase in the freight expenses, he added.

“So, we are compelled to pass on a very minimal portion of this adverse impact through price increase on some of our products.”

Usama Rauf at AKD Securities said the prices were increased to mitigate the impact of the general sales tax (GST) hike from 18% to 25% for cars valued at over Rs4 million.

“Although this change was announced through news channels, the official SRO has not yet been uploaded to the official site. To recall, the government increased the GST for cars above 1400cc to 25% from 18% in March 2023, but this time they’ve extended it to include cars with a value exceeding Rs4 million in that category.