PG Union Corp (寶嘉聯合), which distributes Peugeot and Citroen vehicles in Taiwan, yesterday said it would raise prices by 3 to 5 percent for all models, amid a surge in manufacturing costs and severe component shortage.
The COVID-19 pandemic has disrupted global vehicle supply chains, causing shortages of raw materials, auto chips and key components, as well as a spike in transportation and workforce costs, PG Union said.
“Since early 2021, the French carmakers have raised vehicle prices significantly multiple times,” an anonymous PG Union executive told Unique Satellite TV. “We have been under mounting cost pressure... To cope with this tough situation, we are hiking prices.”
The new prices would take effect on Monday, and PG Union said it might consider further price hikes if the shortages of auto chips and other key components continue to disrupt vehicle production.
PG Union is the first local vehicle distributor to raise prices on imported vehicles. Most automakers and distributors have been trying to maintain the prices for existing models by absorbing the cost increases themselves.
Hotai Motor Co (和泰汽車), which distributes Toyota and Lexus vehicles, said it is also under heavy pressure to negotiate new vehicle prices with Toyota Motor Corp in Japan and faces a shortage of imported vehicles and components.
The company’s revenue last month fell 14.24 percent to NT$16.01 billion (US$568.84 million) from NT$18.67 billion in August, and declined 12.58 percent from NT$18.31 billion a year earlier, company data showed.
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