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KARACHI: Two leading carmakers have notified increase in prices of their vehicles despite decline in sales during the first half of the current fiscal year, sources revealed to Daily Times here on Friday. Dealers of Karachi said, price of Suzuki Alto VXR rose to Rs 490,000 from Rs 479,000; Suzuki Alto VXR (CNG) from Rs 515,000 to Rs 526,000; Suzuki Mehran from Rs 325,000 to Rs 335,000; and Suzuki Mehran (CNG) from 356,000 to Rs 367,000. Price of Suzuki Cultus VXR rose from Rs 573,000 to Rs 600,000; Suzuki Cultus (CNG) from Rs 615,000 to Rs 642,000; Suzuki Ravi Pickup from Rs 320,000 to Rs 325,000; Suzuki Bolan from Rs 379,000 to Rs 390,000; and Suzuki Bolan (CNG) from Rs 417,000 to Rs 428,000. Price of Toyota Corolla XLI rose from Rs 915,000 to Rs 930,000; Corolla XLI from Rs 1,005,000 to Rs 1,020,000; Altis from Rs 1,280,000 to Rs 1,300,000; Corolla A/T from Rs 1,370,000 to Rs 1,390,000; Corolla 2.0D from Rs 1,080,000 to Rs 1,095,000; Corolla 2.0D SE from Rs 1,160,000 to Rs 1,180,000; and Saloon 2.0D from Rs 1,328,000 to Rs 1,348,000. The increase in car prices is quite surprising considering the fact that car sales have fallen during the first half of the current fiscal year as compared to the same period of the last year. Car sales for first half (Jul-Dec) of FY08 stood at 69,958 units, showing a decline of 7.7 percent when compared to 75,769 units sold in same period of FY07. A research report recently released by Arif Habib Securities had stated that sales of Pak Suzuki, Indus Motors, Honda Cars, and Dewan Motors combined fell to 88,087 units in the first six months of the current financial year from 91,175 units in the same period of last financial year. Spokesman for Pak Suzuki Shafiq Ahmad Sheikh said the rupee had been losing value against foreign currencies since November, increasing the import cost for the company. He said the company had been bearing this increase in cost without passing the same on to the consumers till now. However, he said, it has now become very difficult for the company to manage, so it has passed a little of it to the consumers. He said there was no other reason for the price hikes. Spokesman for Indus Motor Company said the company had to increase the prices of different makes due to appreciation of Japanese currency against Pakistani Rupee. Also, the international steel prices have risen very high, thus increasing the cost of production, he said. Local car sales have been severely affected by imposition of 2.5 percent withholding tax in 2007-08 budget and tightening of auto financing policy by banks although the government had banned the import of used cars that were older than three years. A few years ago the scenario of the local car market was completely different, as the car manufacturers enjoyed monopoly and used to charge premium for immediate delivery of their vehicles. They were indirectly supported by banks and leasing companies, which offered easy loans to people to buy automobile at very low interest rates. staff report