Peugeot Pakistan has increased the price of its Peugeot 2008 crossover SUVs by 18% due to the government’s implementation of a General Sales Tax (GST), up from the previous rate of 17%. The company shared the updated prices for both variants of the SUVs through a social media post.
The Peugeot 2008 Active variant will now cost Rs. 5,959,000, an increase of Rs. 51,000 from its previous price of Rs. 5,899,000. Similarly, the Peugeot 2008 Allure variant will now be priced at Rs. 6,656,000, a hike of Rs. 57,000 from its previous rate of Rs. 6,599,000.
This is the second time within a month that Peugeot Pakistan has increased the prices of its vehicles. The previous price hike was implemented on January 31, amounting to an increase of Rs. 499,000. The recent wave of price hikes is in response to the government’s increase in the GST rate, a condition set by the International Monetary Fund (IMF) to receive the next loan installment.
Due to the rising US dollar exchange rate, import restrictions, rising freight costs, and a dearth of Letters of Credit (LCs) issued by the State Bank of Pakistan, the auto industry in Pakistan has been unstable over the past few years (SBP). The auto industry has experienced non-production days as a result of these issues, and a recent report notes that over 250,000 people have lost their jobs in the industry.
To avoid confusion and uncertainty, the auto industry must be transparent with its customers by explaining the causes of price increases. While consumers are feeling the effects of the economic crisis, businesses must work to remain stable and innovative in order to keep their customers’ trust and confidence.
