Passenger cars are becoming more and more inaccessible due to constant price increases by car assemblers. From January 2022 onwards, car makers such as Toyota Indus Motor Company (IMC), Honda Atlas Cars (HCAR), Lucky Motor Corporation (LMC) and a few others announced several price hikes for their respective locally assembled cars. Is.
The Engineering Development Board (EDB) has taken note of this and issued a stern warning to all local car assemblers in Pakistan against the recent price hike. According to an official document available with ProPakistani, the board has asked all local assemblers to justify their cost structure and the recent increase by May 7, 2022.
The document reads:
The Government is very concerned and has taken a very serious view of the continued increase in prices by the local automobile manufacturers/assemblers. This situation is clearly unacceptable and the government may consider introducing regulatory measures, which may include price fixation under the Price Control Prevention and Hoarding Act 1977.
The board has also convened a meeting on May 10, 2022 to address the issue, which will be attended by the respective CEOs of almost all local automotive groups including Toyota IMC, HCAR, LMC, Pak Suzuki Motor Company (PSMC). Solicited Alhaj Automotive, United Motors, Regal Automobile Industries, Master Changan Motors, Hyundai Nishat Motors and Sajagar Engineering Works.
Position of car manufacturers
Carmakers insist that they have no choice but to raise the prices of their cars due to rising raw material prices, shipping costs and the depreciation of the local currency.
He has also openly criticized the government's plans to fix car prices, saying that Pakistan is a free market and carmakers can control the prices of their products where they see fit.
Considering the polarity of views of the government and car makers, it is safe to say that crucial days are yet to come for Pakistan's automotive industry.
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