The local auto sector raised the prices of vehicles by 149% during the period between 2018 and 2023, according to Pakistan Business Forum (PBF) report.
PBF Vice President Ahmad Jawad said the 3 major automobile companies in Pakistan (Suzuki, Toyota, and Honda) have revised their prices three times in just one and a half months since the beginning of the new year due to the rupee depreciation against the US dollar. He revealed that car prices were up by 149% and auto parts prices increased to 90% from 33%, whereas PKR depreciation was around 71%.
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Ahmad Jawad went on to say that vehicle prices in Pakistan were much higher than in neighboring countries, which the government should seriously consider. The PBF Vice President said that unfortunately, the country’s automakers (read assemblers) transfer the burden straight away to the end buyers instead of reducing/managing their profit margins in the volatile economic situation.
The issue has been raised & discussed several times on local automotive blogs, social media posts, and some TV channels but has never been able to reach the concerned authorities. The swift 100% impact of currency depreciation also negates up to 70% of localization claims often made by the assemblers. Whereas in cases where Rupee makes some recovery, the prices are never rolled back.
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Another major concern is that despite automobile sales being reduced by up to 50%, assemblers are still making decent profits with only a slight dent in form of a decline in profits and not losses as projected. Now after the latest increase, an average B-segment sedan costs above Rs 5 million, the C-segment ones above Rs 7 to Rs 9 million, and entry-level hatchbacks around Rs 3 million renders the sorry state of affairs of the local auto industry.
A 3d animation professional with over 20 years of industry experience having served in leading organizations & production facilities of Pakistan, an avid car enthusiast and petrolhead with an affection to deliver writings to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com