The National Assembly Standing Committee has directed the Ministry of Industry and Production (MoIP) to take strict measures to stop the monopoly of auto assemblers and middlemen to eliminate premium/ on-money in order to ensure the timely availability of vehicles at controlled prices.
Related: 90% of Cars in Pakistan are Sold at Premium/ Own/ On Money- Research
During a meeting, the committee also expressed concerns over the prices of local assembled vehicles despite the fact that the USD had decreased in value against the PKR during the last couple of weeks. Although many assemblers have lowered their prices, the degree to which revisions occurred is still a topic of debate between auto companies and customers.
Toyota, Honda, Suzuki, United, Regal and Proton have reduced the prices of their vehicles. Changan on the other hand, has implemented a partial decrease across its lineup whereas Kia and Hyundai have refused to bring the prices down.
Related: Delivery Delays are Nothing Less Than a Blessing for Assemblers
However this isn’t the first time that any govt body has taken notice of the monopoly of assemblers or the existence of premium/ on-money culture in the market. But besides taking notices, no concrete measure has ever been taken to tackle these issues in real means. What will be the outcome of the new strict measures as instructed by the Standing Committee, we will have to wait to find out.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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