Senate Annoyed Over Insufficient Reduction in Car Prices

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The Senate Standing Committee on Industries and Production has expressed serious concerns for not reducing car prices in line with tax concessions availed in budget 2021-22 & auto policy 2021-26. The committee noted that local assemblers had availed tax relief but did not reduce prices in line with incentives.

Industries and Production Division secretary briefed the committee, chaired by Senator Faisal Sabzwari, on comparing car prices in Pakistan with regional countries. Committee members expressed concern over high car prices in the country and noted that despite the measures taken in the federal budget, the prices of new vehicles have not come down.

According to the secretary, there are several reasons why car prices in regional markets such as India, are lower when compared to Pakistan. There is local raw material for cars in India, but not here in Pakistan. While discussing the pricing of cars in the country, the committee was informed that in the case of small cars, higher level of localization and volume are among major reasons for lower prices of cars in India. The secretary also said that that the production of Suzuki in Pakistan is 100,000 units whereas, the annual production of Maruti Suzuki in India is one million.

He said that vehicle prices have been reduced from Rs 85,000 to Rs 155,000 however the official revealed in the briefing that Honda did not reduce the prices of BR-V variants. The committee chairman recommended that members of the committee must visit production facilities. Furthermore, questions related to standardization of safety protocols in newly manufactured vehicles were also raised during the meeting.

Full Story: The Express Tribune

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