Auto market’s fortunes turn as ‘own money’ vanishes on falling demand

Struggling to offload cars, Chinese and Korean firms offer attractive packages, discounts • No change for Toyota, Honda and Suzuki; Audi prices fall on expiry of SRO KARACHI: Increase in interest rates, curbs on auto financing and the prevailing political and economic uncertainty have proven to be more turbulent for Korean and Chinese auto assemblers than their Japanese counterparts and are offering price cuts, and various packages to attract customers. From fringe benefits like free registration to a massive cut in service charges and a ‘ready delivery’ option, Korean and Chinese companies are ready to offer it all, while no such moves are being made by Japanese assemblers. Instead, the Indus Motor Company (IMC) recently raised prices by Rs190,000-700,000, showing high demand for their vehicles, even with an extended delivery time. Moreover, all dealers Dawn spoke to rule out the imposition of any ‘own money’ or premium on vehicles being sold currently, owing to depressed demand. For example, Kia Lucky Motors has slashed the price of different models of Kia Sportage by Rs101,000-251,000 during October, while the company is now offering a 40pc discount on after-sales services, with a free pick-and-drop service available to those who want to take their vehicles for maintenance between Nov 20 and 30.