Government to Conduct Forensic Audit of Car Prices

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Government has decided to carry out forensic audit of the frequent price hikes made by auto assemblers citing devaluation of currency & shipping costs, according to a recent report published by Profit.

During a meeting of the monitoring committee for automobile industry presided over by Federal Secretary for Industries & Production Jawad Malik, the committee has expressed concerns over massive price hikes in the past 5-6 months. According to insiders, though the representatives of the auto industry tried to convince the committee regarding price hike citing the reasons of devaluation of rupee against dollar and other reasons, the committee decided to carry out the forensic audit through a private firm.

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The meeting had earlier sought factors and justification for recent price hikes in different models of cars across the board. According to a representative of auto assemblers, it was informed during the meeting that the recent price hike is due to depreciating currency value, increase in freight charges & raw materials as well as operational cost. The report cites an auto industry representative, who said:

“Apart from the devaluation of currency, the freight charges have increased by 200% and the same would ultimately be reflected in the prices of vehicles. We would welcome any kind of probe or forensic analysis regarding the jump in car prices as there are solid reasons for the increase in cost of production.”

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As per the report, the Ministry of Industries and Production has decided to hire the services of private firms or experts to probe the matter. After due deliberations, the committee directed to carry out forensic analysis of car prices in comparison with factors indicated by the industry as a reason for price change through independent professional expertise. Secretary Industries has instructed to complete the forensic analysis within two weeks. Automotive industry was also asked to provide a localization plan with a time frame as well as safety features compliance report to the Ministry.

Source: Profit

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