Corolla, City and Fortuner: How expensive have cars become after the latest price increase?
Corolla, City and Fortuner: How expensive have cars become after the latest price increase?
Automakers, beset by exchange rate volatility, rising taxes, and dwindling parts supply, have recently given their consumers a major shock by raising prices.
Some of the companies that have revised their rates are Indus Motor Corporation (IMC), Kia Lucky Motor Corporation (KLMC), Honda Atlas Cars Limited (HACL), and Hyundai Nishat Motors.
Indus Motor Corporation
According to documents available with Dawn.com, IMC raised prices by Rs760,000 to Rs3.16 million in various models. Citing the devaluation of the rupee, the increase in taxes and tariffs, including the capital value tax (CVT),. The increase in the prices of raw materials and the cost of transportation.
The new price of the Corolla 1.6 MT, AT and SE models are Rs4.899m, Rs5.139m, and Rs5.639m. While the 1.8 CVT, CVTSR, and CVTSR Black models will have a new price of Rs6.679m, Rs6.149m and Rs6.189m, respectively.
The new prices of Yaris 1.3MT, CVT, HMT, and HCVT are Rs3.799m, Rs4.039m, Rs3.999m, and Rs4.209m. Yaris 1.5MT and 1.5CVT sold at Rs4.309m and Rs4.569m. Revo GMT, GAT, VAT and VAT Rocco sold at Rs9.819m, Rs10.299m, Rs11.349m, and Rs11.999m.
The new rates of Fortuner LO Petrol, High Petrol, Diesel and Diesel Legender are Rs12.489m, Rs14.279m, Rs15.069m and Rs15.839m.
IMC informed its distributors that these prices are indicative and provisional. And, are subject to change and will not construed as definitive.
The price at the time of delivery will remain applicable.
Kia Lucky Motor Corporation
KLMC raised the prices of different models by 500,000 to 1.1 million.
The new prices of Picanto MT and AT are 3.10 m and 3.20 m, while Sportage Alpha, FWD and AWD are 6.25 m, 6.75 m and 7.25 m.
Meanwhile, Sorento 2.4L FWD and AWD cost 7.80m and 8.50m, while the 3.5L also costs 8.50m.
Honda Atlas Cars Ltd
Automotive sources said HACL had informed its dealers about a possible price increase from Rs785,000 to Rs1.45 million in Honda City, Civic and BR-V starting July 30 (today).
According to the documents available with Dawn.com, the indicative prices of City MT 1.2L, CVT 1.2L and CVT 1.5L are 4,049m, 4,199m and 4,439m.
The BR-V is priced at 5,299 m, while the Civic 1.5L is priced at 7,099 m.
India to Restart Ukraine Sunflower Oil Imports as Trade is Facilitated
India to Restart Ukraine Sunflower Oil Imports as Trade is Facilitated
India, the world’s largest importer of edible oil, will likely receive its first shipments of sunflower oil from Ukraine starting in September after a five-month gap, according to Sunvin Group.
Around 50,000 to 60,000 tons may arrive as Ukraine is ready to open some Black Sea corridors for agricultural exports, said Sandeep Bajoria. Sandeep Bajoria is a corridor’s chief executive and Mumbai-based trader. The cargoes will likely be loaded at the seaports of Odessa and Chornomorsk, he added.
“We have started receiving offers for August shipments, but everything will depend on the availability of the vessels,” Bajoria said. “Ukraine has adequate supplies of oilseeds for crushing.”
Indian imports of sunflower oil from Ukraine have been stagnant since April, as the Russian invasion of the country disrupted trade. Moscow and Kiev reached an agreement last week to revive agricultural exports from Ukraine. One of the world’s largest exporters of wheat, corn and vegetable oil.
A move by the Indian government to allow duty-free imports of 2 million tons of sunflower oil annually this fiscal year and the next will boost demand. India bought 1.89 million tons of crude sunflower oil in the year ending in October, with Ukraine supplying nearly 74%, and Argentina and Russia each about 12%.
Just as Ukraine’s sunflower oil imports will resume, India will also boost palm oil purchases after a drop in prices. Imports from the biggest buyer will rise to 800,000 tons in September from 750,000 tons in August, Bajoria said. That’s mainly because of increased demand for fried foods during festivals and because palm is much cheaper now compared to other oils, he said.
U.S. crude exports set a new record as Europe struggles to replace Russian oil supplies amid the superpower’s war against Ukraine.
Exports rose 21% to 4.55 million barrels per day during the week ending July 22, according to Energy Information Administration data released Wednesday. Total shipments of crude oil and petroleum products also rose to the highest level on record.
Those strong flows are likely to continue in the coming weeks as the spread between U.S. and global oil benchmarks continues to widen, incentivizing exports. That’s partly due to emergency U.S. crude releases that have added to supplies, while the rest of the world grapples with shortages.
How a Strong Dollar Affects the Economy and Your Wallet
How a Strong Dollar Affects the Economy and Your Wallet
“My first salary was Rs12,000 in 1996 when a dollar was equal to Rs34. The first salary in the same brokerage industry today is about Rs50,000, even though the dollar rate is higher than Rs228,” said Asif Qureshi. Asif Qureshi is the chief executive of the brokerage Optimus Capital Management.
It means that the first salary of a recent finance graduate in the brokerage industry has dropped from more than $350 a month. The drop is less than $220 in the interim period.
The bottom line is that dollar wages in Pakistan have declined. The decline is due to the steady devaluation of the rupee against the dollar over the years. People employed in the service sector are more exposed to the fluctuation of the dollar rate. It is less than their counterparts in the manufacturing sector, Qureshi says.
“I can’t charge a higher brokerage commission in the name of depreciation. But a large chemical manufacturer will convey the impact of depreciation. They will keep its dollar-based profit margin intact,” he says.
“Experts say the industry can pass on rising costs to consumers. It is more insulated against exchange rate fluctuations than the service sector.”
An increase in the dollar rate is a key contributor to inflation. The economy relies on inevitable imports. The relief is from gasoline and medicines to legumes and books. The import bill exceeds export earnings by a wide margin each year. The excess results in a shortage of dollars in the local market. The exchange rate goes further north, fueling import-driven inflation.
Prices of consumer goods in common use rose 21.3 percent in June from a year earlier, due to expensive fuels and food.
So, is there any homemade trick that ordinary people can use to cut the impact of the strong exchange rate movement?
The most obvious complex is working from home and carpooling. Using energy-efficient equipment at home to lessen the impact of exchange-rate-induced inflation, Qureshi says.
He advised people not to keep their savings in dollars or even gold as a hedge against inflation. There have been many years in which inflation outpaced rising dollar and gold rates. For example, the dollar rate budged during General Musharraf’s years in the 2000s for a variety of reasons. In the same vein, stock investors have not made a profit in the last six years or so.
The stock market needs a large influx of liquidity as stocks are undervalued, he said. Fixed income funds are offering returns of around 15%, which can be a good hedge against inflation, he added.
Speaking to Dawn, former Federal Revenue Board Chairman Syed Shabbar Zaidi said there aren’t many people can do to escape the consequences of a dollar rate hike, other than reducing their gasoline and electricity consumption.
“But I must say that our overall approach is flawed. We are too focused on reducing consumption at the individual level. Instead, there should be a one-size-fits-all focus on reducing fuel and electricity consumption at the national level. Early closure of shopping malls is a necessity,” he said.
But what is the long-term way out?
Putting on his advisory hat, Zaidi said the economy will be better off if large conglomerates focus on generating an exportable surplus while expanding into segments that don’t rely on imported raw materials. That will slow the pace of dollar outflows and stop the uncontrolled depreciation that is wreaking havoc on the lives of ordinary people.
“We should also discourage foreign investment in banking and water sales businesses”. He said that referring foreign direct investment (FDI) leads to the repatriation of dollar-based profits and dividends each year.
Many economists believe that FDI, even though it does not create any debt obligations, has mostly been detrimental to Pakistan. FDI flows have been concentrated in consumption-based sectors such as telecommunications, banking, packaged foods and milk, soft drinks, and toiletries.
In other words, one-time dollar inflows generate zero foreign exchange for the country. Multinational companies convert their income in rupees into dollars in the local market and send the precious foreign currency to their foreign backers in the form of dividends every year.
“Why do we need a multinational to sell us water? Why do we need foreigners to invest in our banks? Don’t we already know the bank?” said Zaidi.
Global Investors Sell Most of China Government Bonds in June
Global Investors Sell Most of China Government Bonds in June
Foreign investors cut their holdings of Chinese sovereign bonds by the largest amount on record in June. It is reflecting a surge in capital outflows as global central banks raise rates as Beijing eases.
Foreign investors reduced their positions in China’s onshore sovereign bonds by 55.9 billion yuan ($8.3 billion) last month, the most since 2014. When Bloomberg began compiling data based on official figures. They had 2.32 trillion yuan of banknotes at the end of June, compared with a peak of 2.52 trillion yuan in January.
China-Bond released the data two days after a PBOC statement. Data showed foreign investors had cut their holdings of the country’s sovereign bonds for the fifth month. It is the longest stretch of such outflows. The attractiveness of yuan-denominated assets is falling globally. As China’s yield premium over the United States turned into a discount amid aggressive rate hikes by the Federal Reserve.
This is the first time in the past year that China-Bond released June figures Friday morning in Beijing. Released has reported cash flow numbers so late in the month, according to data compiled by Bloomberg. That tardiness is again raising concerns about data transparency in China as the country struggles to boost an economy hit by its Covid Zero policy.
Sovereign bonds weren’t the only ones facing outflows. Foreign investors also net-cut 90 million yuan of local government bonds. And 35.47 billion yuan of monetary policy notes in June, ChinaBond data showed.
IMF Seeks Guarantees on Saudi Financing to Pakistan
IMF Seeks Guarantees on Saudi Financing to Pakistan
The International Monetary Fund is seeking to assess Saudi Arabia’s commitment to funding Pakistan, before the multilateral lender disburses fresh funds to the South Asian nation, according to people familiar with the matter.
The Washington-based lender wants to make sure Saudi Arabia goes ahead with up to $4 billion in funding to Pakistan to ensure Islamabad. That does not have a funding gap after the IMF loan,” said the people. That asked not to be identified as discussing private deliberations. The transfer could include special drawing rights, they added.
The issue is crucial because, while the IMF must lend Pakistan $1.2 billion. This would be insufficient for Prime Minister Shehbaz Sharif’s government to avoid a debt default. Pakistan’s rupee and bonds are sinking as financing problems. That coupled with renewed political uncertainty, roils the country.
Representatives of Pakistan’s IMF and Finance Ministry did not immediately respond to messages seeking comment.
The IMF is in talks with a country about the possible transfer of 2 billion SDRs ($2.6 billion), Pakistan’s Finance Minister Miftah Ismail said on July 20. Pakistan needs at least $41 billion over the next 12 months to finance debt payments. That increases foreign exchange reserves, which analysts such as Saad Khan of IGI Securities Ltd. anticipate will be met, but only barely.
Pakistan reached a staff-level agreement with the IMF last week to revive its bailout package. If there is a risk of default, the IMF board may not approve the release of cash.
$1.17 billion tranche to be released in three to six weeks: IMF
$1.17 billion tranche to be released in three to six weeks: IMF
The International Monetary Fund (IMF) has said its deal with Pakistan would lead to an “immediate” disbursement of $1.17 billion to the country.
“It’s an agreement on a combined seventh and eighth review of the program. This will result in the disbursement of some $1.17 million to Pakistan. Pretty much, right away,” IMF Communications Director Gerry Rice said at a news conference Thursday afternoon in Washington.
He said this brought the IMF’s total disbursements to Pakistan under the ongoing program to around $4.2 billion. He responded to a question about the timeline for releasing the tranche. The IMF official said the executive board is likely to meet three to six weeks from now.
The deal “could also unlock more funds for Pakistan. Recent weeks have approached the brink of a balance of payments crisis,” Rice said.
The IMF official said it was an agreement on a combined seventh and eighth review of the IMF’s program with Pakistan.
“And we hope this will help stabilize the economy and other things. It will help expand the social safety net to protect the most vulnerable, and accelerate structural reforms. And help stabilize the macroeconomic situation in Pakistan,” he added.
“The IMF’s announcement will prove to be a much-needed shot in the arm for Pakistan’s ailing economy,” Aqdas Afzal. Aqdas Afzal is a Karachi-based analyst and assistant professor of economics at Habib University. He told The New York Times. He noted the sharp rise in energy prices after the invasion of Ukraine. The rise in commodity prices, in general, had hurt the country.
The newspaper noted that reviving the loan program and getting the economy back on track “has been a political litmus test for Pakistan’s new prime minister.”
The report also highlighted the government’s fear that IMF-induced reforms could trigger “a public backlash. That could hurt the PML-N’s chances of success in the upcoming general election.”
China's Real Estate Sector Remains the Biggest Drag on the Economy
China’s Real Estate Sector Remains the Biggest Drag on the Economy
China’s housing slowdown showed little sign of improvement in the three months to June. Its output contracting for the fourth straight quarter and clouding growth prospects for the rest of the year.
Output in the real estate industry, a key economic contributor, contracted 7% in the second quarter from a year earlier. Found in the National Bureau of Statistics report on Saturday. It remained the biggest drag on the world’s second-largest economy among all sectors. It performed worse than in the first quarter of 2022 when it declined by 2%, the report showed.
New tensions have recently emerged in the sector. Households in dozens of cities have stopped paying mortgages. Because property developers have not completed the construction of their homes. State media quoted analysts as saying it could damage the stability of the financial system if homebuyers in more places follow suit.
In June, home sales fell 23.4% from a year earlier and real estate investment fell 9.4%, according to official figures released Friday.
China’s economy grew 0.4% in the second quarter. The second quarter missed economists’ forecasts for a 1.2% expansion and reached the slowest pace. That is since the country was first hit by the coronavirus outbreak two years ago, the data showed.
Hotels and restaurants, one of the hardest-hit industries, saw their production fall by 5.3% last quarter. That makes it the second worst performing sector. That’s compared to a 0.3% drop in the previous three-month period. Covid lockdowns and the suspension of dining services in several major cities have dealt a severe blow. while fears of becoming infected also discouraged consumers.
The transport, warehousing, and postal industry decreased by 3.5% compared to the same period in 2021. Production in industrial enterprises increased by 0.4%.
Japan utilities rise as PM calls for restarting Nuclear Reactors
Japan utilities rise as PM calls for restarting Nuclear Reactors
Shares of Japanese utility companies have risen. Prime Minister Fumio Kishida called for up to nine nuclear reactors to be brought online this winter. to help avert an energy crisis.
Hokkaido Electric Power Co. led the gains on Friday advancing as much as 4.5%. After Kishida told the Ministry of Economy, Trade, and Industry to push for restarts, which could cover about 10% of Japan’s energy consumption. Shikoku Electric Power Co. and Hokuriku Electric Power Co. rose as much as 3.5%.
Japan has been struggling with power supply amid extreme weather and delays in restarting nuclear plants. It forces the government to ask Tokyo’s citizens to conserve electricity to avoid blackouts.
Kishida’s stance is in line with existing plans by regional utilities, but is “a modest positive for electric power stocks by emphasizing the importance of nuclear power to the country’s energy supply,” Citigroup Inc. analyst Yui Shoji wrote in a note.
Pagani to continue releasing V12 Hypercars after scrapping EV plan
Pagani to continue releasing V12 Hypercars after scrapping EV plan
Pagani has no plans to make electric cars after conducting a four-year study on whether they would be suitable for the brand.
The head of the company, Horacio Pagani, thinks that electric vehicles are too heavy and lack emotion. That most of the energy they use is not produced.
He also believes that the climate impact of supercars is so small. Their use of an internal combustion engine, yet large, is in a broad context irrelevant.
“In 2018, I created a team working on all-electric cars,” he told Autocar at the recent Milan Monza Motor Show.
Horacio Pagani founded the brand in 1992 and still heads it today
The main responsibility of this team was to seek global homologation for Pagani to create such cars. It is particularly for the United States, and for safety, which could be delivered. Yet, “in four years, we never found interest in the supercar market” for an electric vehicle, Pagani said.
He added: “Right now, 90% of the energy is produced without renewables. It’s silly to think that only a few supercars [in the world] with ICE can hurt the climate when 90% of the energy is produced in a bad way.”
Pagani’s studies also showed that you would need to use a 600kg battery in an EV, which is more than half the total weight of the Huayra R (1070kg).
Pagani also believes that the performance of electric cars is excessive
“I have a Tesla to understand electric vehicles, and you don’t need to have such high performance on them,” he said.
“The challenge is to make an EV that gives good emotion like a normal ICE. Pagani is not going to do something with good performance, as you can do [now], but to give the driver excitement.
He added that the style and visual drama of his cars remain hugely significant, as it is making them accessible to drive. “If you work only on dynamics, all the cars end up the same,” he said. “Spend time on fashion and style and you’ll get something wonderful.
“Our goal is to make cars easy to drive. Gentleman drivers can drive the Huayra R very easily.”
Other philosophies include providing exceptional customer service. It allows buyers to get their car on the track and ensures it remains accessible on the road. It is something Pagani believes Ferrari does best of all.
It’s also important to make Pagani cars easy to live in. It exemplifies by the 10,000km service intervals on the engine, despite being a V12 that accelerates to 9000 rpm.
“We don’t want extreme cars,” Pagani said. “We want easy cars that aren’t stressful for gentleman drivers.”
Pagani is also proud of the residual values of its cars, the company has built approximately 450 examples of Zonda and Huayra in the last two decades.
“Some Zondas are now 10 times the starting price,” he said. “The Cinque is now 20 times.”
The firm’s waiting list has been maintained for the past decade at around three years. It has already found buyers for the first 100 copies of the new Pagani C10, which it will unveil in September. “All of these were sold before it has even been revealed,” Pagani said.
He added, however, that he never becomes complacent with demand and remains respectful of market conditions that could affect his company, because many of his clients work in financial services.
“We’re a success, but a lot can happen all of a sudden,” he said. “There’s a difference between success right now and foresight for the future.”
To that end, it invests a lot in R&D, usually around 20% of revenue.
“We are one of the leading companies investing in the future. We normally invest 20%. Last year, it was 14%,” Pagani said. “It’s like a race: you can stop, but when it restarts, you’re in the back. Even if you don’t have a new car, you are investing.”
Pagani currently builds about one car per week, compared to about one car per month a decade ago.
What’s in the Pagani garage?
Horacio Pagani is as big a car enthusiast as you can imagine, as he grew up in Argentina idolizing F1 legend Juan Manuel Fangio, who eventually became his friend and introduced him to Mercedes-Benz.
Pagani spent many years at Lamborghini, joining as a teenager after moving to Italy. Before launching his company, he became one of the first innovators with carbon fiber, an area he continues to pursue today through a subsidiary company.
What is this car lover’s all-time favorite, then?
“It’s a 1963 Jaguar E-Type Roadster,” Pagani said. “That’s my favorite car.”
What about modern times?
“The Ford GT is the most beautiful of the recent cars.”
What about other automakers?
“I like Porsche; I like to go to their events. I love cars. I have a Ferrari F12tdf, and my gem is a Ferrari 275 GTB. It’s chassis number one, which they used for homologation.”
