Latest news with #LuckyMotorCorporation
Business Recorder
03-07-2025
- Automotive
- Business Recorder
After Lucky Motor, Pak Suzuki hikes car prices amid new NEV levy
After Lucky Motor Corporation (LMC), Pak Suzuki Motor Company (PSMC) has become the latest auto manufacturer in Pakistan to increase the prices of its vehicles following changes introduced in the Federal Budget 2025-26, including the implementation of a new NEV [New Energy Vehicle] levy on automobile sales. 'No impact of an increase in financial economic cost has been transferred to the customer. The price revision solely reflects the increase in government-imposed taxes and levies,' PSMC said in its notice. The NEV levy, introduced in the Finance Act 2025, applies to all internal combustion engine motor vehicles and motorcycles and came into effect from July 1, 2025, increasing prices significantly. Pakistan advances NEV policy with Rs100bn subsidy According to the details, the NEV levy covers all vehicle categories from basic motorcycles to luxury SUVs. However, the policy exempts new energy vehicles (electric and hybrid cars), vehicles manufactured exclusively for export, diplomatic mission vehicles, and those belonging to international organisations with diplomatic privileges. According to PSMC's circular issued to dealers on Wednesday, the revised retail prices, which will become effective from July 1, 2025, reflect an increase of over Rs186,000. Among the most impacted models is the Alto VXL AGS, which now costs Rs3,32 million, marking a jump of Rs186,446 from its previous price. Meanwhile, the VXR and VXR AGS variants will now be available at Rs2.99 million and Rs3.17 million, following hikes of Rs167,861 and Rs177,480, respectively. For the Cultus variants, the Cultus VXR has seen a significant hike of Rs40,490, with its new price now set at Rs4,08 million. Meanwhile, the VXL and AGS variants are now available at Rs4.36 million and Rs4.59 million, respectively. For the Swift series, the price of GLX CVT has gone up by Rs47,190, bringing its revised retail price to Rs4.76 million. Additionally, Swift's GL MT and GL CVT variants are priced at Rs4.46 million and Rs4.60 million, following the latest revision. Every VX and VXR have experienced an increase of Rs163,230 and Rs166,200, respectively. Meanwhile, Ravi variants have seen hikes of Rs18,810 and Rs19,560. The PSMC notification clarified that the updated prices are inclusive of FED, Sales Tax, and NEV Levy, but exclude Advance Income Tax.
Business Recorder
02-07-2025
- Automotive
- Business Recorder
Lucky Motor hikes KIA car prices by up to Rs700,000 amid NEV levy imposition
Citing recent developments, including measures introduced in the federal budget, Lucky Motor Corporation (LMC) has announced a sharp increase in the ex-factory prices of its KIA-brand vehicles, effective July 1, 2025. The price hike goes as high as Rs700,000 across select models. 'Our focus has consistently been on offering the highest quality products at competitive prices. However, recent developments have had a significant impact on prices, including the imposition of the NEV [New Energy Vehicle] levy in the federal budget, continued depreciation of the Pakistani rupee, and rising international freight costs,' the company announced in a notification to dealers. 'Despite our best efforts to minimise and absorb the impact, a price adjustment is being implemented from 1st July,' it added. The NEV levy on all internal combustion engine motor vehicles and motorcycles, introduced in the Finance Act 2025, came into effect from July 1, 2025, increasing prices significantly. According to the details, the NEV levy covers all vehicle categories from basic motorcycles to luxury SUVs. However, the policy exempts new energy vehicles (electric and hybrid cars), vehicles manufactured exclusively for export, diplomatic mission vehicles, and those belonging to international organisations with diplomatic privileges. Among the key price changes, Lucky Motors increased the prices of its hatchback Picanto AT by Rs150,000. The automatic variant will sell for Rs4.09 million after the price hike. Meanwhile, the Stonic EX+ has seen a significant surge of Rs499,000, making its new price Rs5.99 million. The Stonic EX variant will now be available at Rs4.86 million after a hike of Rs95,000. The company jacked up prices of the Sportage and Sorento variants as well. The new price of Sportage Alpha is Rs8.89 million, while Sportage FWD is now available at Rs10.49 million. The Sportage HEV variant is now priced at Rs11.59 million, after a price increase of Rs600,000. The price of Sorento 3.5L V6 is Rs13.89 million, while the ex-factory rate of Sorento 3.5L V6-EMI is Rs14.39 million amid an increase of Rs400,000. Meanwhile, the Sorento HEV FWD and its EMI version will be available at Rs15.29 million and Rs15.79 million, respectively, following an increase of Rs600,000. The Sorento HEV AWD and its EMI version saw the steepest hike in the entire lineup, with a Rs700,000 jump — now priced at Rs16.69 million and Rs17.19 million, respectively. The Kia Carnival, a premium multi-purpose vehicle, is now priced at Rs18.2 million, reflecting a Rs700,000 jump. Interestingly, the prices of KIA's electric vehicles— EV5 Air, EV5 Earth, and the EV9 — remain unchanged. 'All customer orders invoiced on or after 1st July 2025 will be subject to the revised ex-factory price. 'Any new or additional duties, taxes, or charges, if imposed by the government, and/or currency fluctuations leading to price adjustment and applicable at the time of delivery, will be borne by the customer,' LMC said. The ex-factory prices are exclusive of freight and insurance charges.
Business Recorder
24-05-2025
- Automotive
- Business Recorder
Proposed tariff rationalisation plan discussed
ISLAMABAD: Chairman of Lucky Motor Corporation (LMC) Muhammad Ali Tabba has met with the Federal Minister for Finance and the Special Assistant to the Prime Minister (SAPM) on Industries and Production to share his concerns regarding the government's proposed Tariff Rationalisation Plan, particularly the reduction of duties on Completely Built-Up (CBU) vehicles to 15 percent over a period of five years. He emphasised that while the intent behind tariff rationalisation may be to make cars more affordable for customers, the proposal currently under consideration—if implemented without a well-thought-out approach—could have an adverse impact on Pakistan's local auto industry, undermine investor confidence, and lead to a current account deficit. He noted that under the Auto Development Policy (ADP) 2016–2021, Korean, European, and Chinese automakers entered the Pakistani automotive market with a cumulative investment of approximately $1.2 billion to establish local manufacturing plants. This initiative achieved key objectives, including offering more choices to consumers, fostering competition, and creating employment opportunities both in vehicle assembly and the auto parts manufacturing sector. While expressing support for the government's initiative to rationalise tariffs, Tabba stressed that a significant gap must be maintained between CBU and Completely Knocked-Down (CKD) duty rates in order to protect the domestic auto industry. He suggested that a consultation session be held with key stakeholders to determine the appropriate duty differential between CBU and CKD imports in order to safeguard the local auto industry. In addition to tariff concerns, he voiced his reservations about the potential liberalisation of used car imports. He stated that Pakistan's auto industry currently produces and sells around 150,000 units per year and hosts approximately 16 automobile brands — offering far more consumer choice than in the past. In this context, there is no justification for liberalising used car imports. He also expressed concern over the government's proposal to allow the commercial import of used cars, warning that such a policy could turn Pakistan into a 'junkyard' of second-hand vehicles. Given Pakistan's fiscal constraints and limited foreign exchange reserves, Tabba proposed that a liberal import and tariff regime is unsustainable and would likely result in the depletion of FX reserves, a widening current account deficit, and further depreciation of the PKR. In response, the SAPM on Industries and Production assured Tabba that the government values industry input and will consult all stakeholders before finalising any decisions on the tariff rationalisation and used car import policies. Copyright Business Recorder, 2025
Express Tribune
24-05-2025
- Automotive
- Express Tribune
Reduction in duties on vehicles rejected
Listen to article Lucky Motor Corporation Chairman Muhammad Ali Tabba has aired concerns over the government's proposed tariff rationalisation plan, particularly the reduction in duties on completely built-up (CBU) vehicles to 15% over a period of five years. Tabba emphasised that while the intent behind tariff rationalisation may be to make cars more affordable for customers, the proposal currently under consideration, if implemented without a well-thought-out approach, could have an adverse impact on Pakistan's auto industry, undermine investor confidence and lead to a current account deficit. He made the remarks while meeting Federal Minister for Finance Muhammad Aurangzeb and Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan. He noted that under the Auto Development Policy (ADP) 2016-2021, Korean, European and Chinese automakers entered the Pakistani market with a cumulative investment of $1.2 billion to establish their manufacturing plants. This initiative achieved key objectives, including offering more choices to consumers, fostering competition and creating employment opportunities both in vehicle assembly and auto parts manufacturing sectors.
