Comments on: Poor Highway Security: Car Carriers to Stop Nationwide Operations

By: Linkin'

Linkin' — Thu, 02 Dec 2021 10:41:04 +0000

In reply to Ali Khan.

https://carspiritpk.com/huge-imbalance-in-ckd-vs-cbu-pricing/

Here’s the link to that article. It is one of my most quoted articles in many gatherings. Thank you for taking the pain to find out facts and figures and then composing and getting it published.

By: Elections

Elections — Fri, 26 Nov 2021 14:50:18 +0000

The next elections are near (less than 1.5 year till 2023). It is general knowledge that in the months nearing the election the number of Hilux and LC snatching in Karachi/Sindh increases. It had happened in 2013 election and in 2008 election as well that you could hear the frequency of number of 4×4 snatching increase in inverse proportion to the time remaining in election.

By: TruongNguyen

TruongNguyen — Thu, 25 Nov 2021 09:19:59 +0000

In reply to Ali Khan.

What a shame. We’re still made to live like the 1940s where a car is considered a luxury and not a necessity. These people have turned it into a luxury. And when time comes to question, they point their fingers at the government and blame them for it, then ask them to reduce taxes. Does that mean they will reduce their prices as well? Like we’ve seen recently, I don’t think so.

By: Ali Khan

Ali Khan — Thu, 25 Nov 2021 07:02:44 +0000

“Luxury vehicles”
I have written about the prices of these so called “luxury vehicles” in an article I wrote for CSP a while back. Let’s recap the price of this Toyota cruiser.
The variant of the Cruiser that is sold new by Indus Toyota as a local CBU import is around 5 caror 30 lacs PKR.
This variant of the cruiser is sold in Japan, (the country from which this is imported into Pakistan by Indus Toyota), for around 80 lacs PKR (converted from Japan yen). 80 lacs is it’s market SALE price in Japan.
How does 80 lacs translate to 5 caror 30 lacs?
The going assumption is that the government charges 375% of the value of the vehicle in taxes. That means the tax on the cruiser is around 3 carors. Add the original price of the vehicle and we are looking at 3 carors 80 lacs total for getting the cruiser into the country. That means at a price of 5 carors 30 lacs that it is sold in Pakistan, Indus toyota is taking 1 caror 50 lacs as profit. THINK ABOUT THAT!
The cruiser’s market price is 80 lacs in Japan. Indus is taking almost 200% ONLY AS PROFIT!
That is just the Indus picture. The tax and profit situation for the used japan CBU imports is much worse.
TLDR the taxes and profits on these cars are so insane that they have become more valuable than gold or prize bonds.
And talking about local assembled, These companies have them selves created a situation where they keep the supply artificially low in order to drive up demand. They are all not producing up to capacity. They have created a very bad market situation.
But as they have the government’s corrupt ear. They are literally getting away with murder. And I’m not joking.
Today it is these “luxury vehicles”. Tomorrow they will be stealing extremely average cars such as the Corolla or Civic just because due to the tax and unmonitored profit of the local companies, the cars are, even now, priced higher that small houses in some areas. Their prices are going to go higher.
Today they threw the drivers tied up in a grass field. Tomorrow, these pieces of over priced, over taxed metal will cost someone their life.
Dear leaders, Don’t cry about situations that you have your self created.