Pakistan Business Forum (PBF) said on February 22, 2023, that automobile sector had raised the prices by 149 percent during 2018-23 linking it with dollar rate against Pak rupee and now vehicles prices reached up highest level of their history.
PBF Vice President Ahmad Jawad told a local news agency that three major automobile companies in Pakistan had revised the prices three times in just one and a half months in the wake of rupee deprecation against US dollar.
Now Pak rupee was on upward side, as its value appreciated substantially against US dollar i.e., from Rs 277 to Rs 261, he mentioned and urged the big three companies in the automobile sectors to reduce their vehicle prices and withdraw their last two circulars regarding price hike issued after January 12, 2023 onwards. He said that analysis of car and bikes prices increase vs cost–adjusting to taxes from 2018-23 revealed that car prices up by 149 percent and auto parts prices increased to 90 percent from 33 percent with PKR depreciation was 71 percent.
Ahmad Jawad added that vehicle prices in Pakistan were much higher than neighboring countries, which needed to be reviewed seriously by the government, arguing that on what grounds the vehicles in India were cost effective for costumers, even if we add currency conversion between Indian Rupee and PKR.
To a question, Jawad said, “No doubt cars are expensive but the real issue is that the buyers do not get the best value for their money,” adding that overpricing and that too without the international standard safety and quality features was the real issue.
PBF Vice President said that unfortunately, country’s automakers transfer the burden straight away to the end buyers instead of reducing/managing their profit margins in the volatile economic situation. He urged the government to also consider price control mechanism while focusing the promotion of auto industry. Jawad asserted that the industry should be asked to explain how different things – taxes, dollar rate and local production of parts – influence the prices, and the government should also monitor prices of automobiles.
Source: IBP