According to a notice the firm released on February 21, the new rates will start to apply on February 14, 2023. With the exception of the KIA Carnival, KIA vehicles are now only bookable with full payment.
According to LMC's announcement, both the increase in sales tax rate and the limits on letters of credit (LCs) that resulted in a scarcity of completely knocked down (CKD) parts have had an effect on the auto sector.
Customers will now be required to pay much more for a variety of models, according to the updated rates.
The KIA Stonic EX now costs Rs4,842,000 as opposed to Rs4,800,000. This is a $42,000 increase.
Similar to this, the KIA Stonic EX+'s price rose from Rs5,250,000 to Rs5,295,000, a $45,000 increase. The KIA Sportage Alpha's price has increased by Rs56,000 from its previous price of Rs6,500,000.
The Sportage FWD now costs Rs7,111,000, up Rs61,000, while the Sportage AWD costs Rs7,716,000, up Rs66,000 from the previous price of Rs7,650,000.
The price of the KIA Sorento 2.4L FWD has increased to Rs8,472,000 from Rs9,100,000. The price of the 2.4L AWD has increased to Rs9,178,000 from Rs9,100,000.
The price of the KIA Sorento 3.5L FWD has increased by Rs78,000 to Rs9,178,000 from its previous price of Rs9,100,000.
The KIA Grand Carnival, which was being offered for Rs15,000,000, would now cost Rs15,129,000, an increase of Rs129,000. The business has also increased the price of the vehicle.
Sabir Shaikh, a Karachi-based auto trader, claims that the auto sector is under a lot of stress right now. The difficulty 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.
Also, the industry is significantly impacted by sales tax, which makes an already difficult position much more difficult. In addition, CKDs are subject to additional obligations, which makes it harder for businesses to sustain production levels, according to him.
As a result, many businesses have reduced their output, and it is anticipated that their sales in the car industry will continue to fall.
Both automakers and merchants are finding it difficult to meet demand at the moment, which is worrying, according to Shaikh.
"Among of the issues are the lack of CKDs and the difficulty to open LCs, and the additional effect of sales tax and other levies have aggravated the situation."
In light of this, he continued, the industry's future was still unclear, and it would probably take some more time for it to be able to recover.
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