Karachi, 24 February 2023 (GNP): Due to the most recent increase in the sales tax from 17% to 18%, Lucky Motor Company (LMC) has increased the price of KIA vehicles.
The corporation announced new prices in a notification on February 21 that would be in effect starting on February 14, 2023. Now, reservations for KIA vehicles—with the exception of the KIA Carnival—must be made in full.
LMC’s revelation suggests that the limitations on letters of credit (LCs), which resulted in a lack of completely knocked down (CKD) parts, and the increase in sales tax rate have had an effect on the auto industry.
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The price of the KIA Picanto MT was increased by Rs28,000 to Rs3,228,000 by the company, while the price of the KIA Picanto was increased by Rs30,000 to Rs3,430,000.
The price of the KIA Stonic EX has increased by Rs42,000 to Rs4,842,000 from its previous price of Rs4,800,000.
Similar to this, the cost of the KIA Stonic EX+ increased by Rs45,000 to Rs5,295,000 from Rs5,250,000. The price of the KIA Sportage Alpha, which the business was selling for Rs6,500,000, has increased by Rs56,000. Other models of KIA cars have faced a similar price hike.
According to Karachi-based auto trader Sabir Shaikh, the auto sector is under a lot of stress right now.
According to Sabir Shaikh:
“The current state of the auto industry is a cause for concern, with both automakers and traders struggling to keep up with demand.
Shortage of CKDs and the inability to open LCs are some of the challenges, and the added impact of sales tax and other duties have exacerbated the situation.”
He remarked that the inability to open LCs, which has led to a dearth of CKD units, is one of the main problems. In this circumstance, automakers are compelled to keep paying salaries to employees who aren’t working, which increases their financial burden.
