In a shocking revelation, the price of the MG Car in Pakistan has been increased by a massive Rs. 2.3 million, which has been the second price hike in a period of two months. The notification regarding the massive price hike of the MG Car in Pakistan, which is also known as the MG HS Exclusive Trophy Grade, started circulating on social media and many people thought it was fake because of the ridiculous increase. However, the rumours, which have been circulating on social media, are real, and the company has originally increased the price of the vehicle by 2.8 million.
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MG Car Price in Pakistan
MG Car price in Pakistan is now Rs. 8.9 million after a ridiculous increase of Rs. 2.3 million. The old price of the MG Car was Rs. 6.6 million. It is the second time that the company has increased the price of MG HS in two months; this is a huge increase and is not justified.
The company has aired the remarks that it is taking this decision because of the instant increase in the regulatory duties (RD) as well as Federal Excise Duty (FED) by the federal government on Completely Built Units (CBUs). However, the company has come up with a few options for consumers who have already booked MG Car and waiting for the delivery. The company will either refund the full amount or allow the customers to wait for the delivery till the price hike is withdrawn by the government. The company has also said that it is trying to minimize the impact of this price hike on its customers.
Reasons for MG Price Increase
It is no secret that the automotive industry has been hit hard by the current global economic conditions. Inflation and currency depreciation have made it difficult for companies to maintain profitability, and the current semiconductor chip shortage only exacerbates the situation. Given these challenges, it is perhaps not surprising that MG has announced a price increase for its vehicles in Pakistan.
While the company cites various factors for the price increase, there is no doubt that MG has already established a local assembly plant in Lahore, which suggests that the company is committed to the Pakistani market and is looking to increase its presence in the country.
The Pakistani government is currently considering increasing excise duties and customs on imported vehicles, which would help reduce the country’s import bill and current account deficit. However, it would also likely harm MG’s sales, as customers would be less likely to purchase expensive CBU units.
Ultimately, MG’s transition from CBU units to locally assembled units will significantly impact the company’s business and the prices of its vehicles. Sales are expected to increase with the model likely to be more affordable. However, if customs and excise duties are increased, this could offset some of the potential gains.
MG Car (Locally Assembled)
At the end of the notification, MG Pakistan informed its clients that they would be given priority when bookings for the MG HS Essence open – a locally produced MG HS brand name. According to MG Pakistan, there is not any difference between the car’s CBU and locally built models. The only difference is in the name. The CBU model will be called the HS, and the locally built model will be called the HS Essence. The move aims to give customers more choice and make the car more affordable.
The plant is Almost Ready
The most important information we received from MG officials was that the MG Pakistan factory is nearly complete. “We are on the verge of launching the facility,” the official said, adding that MG’s plant will be the best in Pakistan in some elements of automobile assembly. The official added that the company is in the process of finalizing supplier contracts and testing products.
This is good news for the Pakistani economy and automotive market, as the entry of a new player will increase competition and likely lead to lower consumer prices. It is also a vote of confidence in Pakistan as a manufacturing destination and will help attract more foreign investment.
Contrast with BMW – X1 in Pakistan
There are many reasons why the MG Car is a better choice than the BMW X1 in Pakistan. Firstly, the MG is significantly cheaper than the BMW X1, making it a more affordable option for Pakistani buyers. Secondly, the MG Car comes with a longer warranty than the BMW X1, giving buyer’s peace of mind in knowing that their vehicle is covered for a longer period of time. Finally, the MG Car offers more features and options than the BMW X1, making it a more attractive choice for Pakistani buyers.
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