Hyundai Nishat has jumped onto the price hike bandwagon by increasing the prices of Elantra GLS and both variants of Sonata, citing local currency instability and increased shipping cost.
Last week, Engineering Development Board (EDB) summoned a meeting with the heads of various local automakers — including Hyundai Nishat — to discuss recent price hikes.
Prior to the meeting, EDB told the companies to share their respective cost structures and valid reasons for price hikes. Out of eleven automakers, only a few shared their details, to which the Ministry of Industries and Production (MoIP) raised serious objections.
It stated that the rate of price hikes is much greater than that of the US Dollar (USD) hike against the Pakistani Rupee (PKR). In response, automakers explained that an increase in other operational costs has also contributed to price hikes.
They highlighted that a freight container that previously cost $3,000, now costs $6,000, adding that raw material costs have also gone up.
Conclusively, MoIP told the remaining companies to submit their respective cost structures within two days. It informed that a follow-up meeting in this regard will take place soon.