The domino effect of high inflation is continuing in full swing, with many manufacturers proposing hikes. Morris Garages (MG) Pakistan is the newest to do so for its most popular automobile MG HS, according to a recent report from carspiritpk.com.
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MG, like many others, has announced a three-part increase in price in which:
- Those who paid in full for November and December 2021 delivery would be required to pay an extra Rs. 200,000.
- Those who submitted installments for delivery over the same time period as above would be required to pay an additional Rs. 500,000.
- Those who made installments for January 2022 deliveries or placed fresh orders would have to pay an additional Rs. 850,000.
The price increase is as follows:
Although the firm has yet to formally declare the price hikes for other variants, the MG ZS’s price has also been hiked by Rs. 306,000, putting it to Rs. 4.44 million, according to the source.
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The firm, like other car manufacturers, has claimed the depreciation of the Pakistani rupee (PKR) against the US dollar, a rise in freight, the cost of transportation owing to high fuel prices, and high semi-conductor chip costs due to a worldwide shortfall as reasons for the price hike.
Despite the fact that the business has already established a local assembly factory in Lahore, it has only supplied Completely Built-Up (CBU) MG HS units. There is no word on when the firm will start building automobiles domestically.
The government is considering raising automobile import levies in order to lower the country’s soaring import bill and current account imbalance. If import taxes are raised, MG’s preference for selling just CBUs will not serve them well.