These Cars in Pakistan are More Expensive Than a Bungalow

Passenger car is a commodity that has customers in every society, however, in absence of sophisticated public transport, the desire to have a passenger car in Pakistan is probably higher than in many other countries. In fact, it has become a necessity to have a passenger car, be it new or old, in every home.

This great appetite to own a car has created an opportunity for the limited number of local assemblers to abuse the situation. For a long time, the Big-3 have exploited the situation by creating a monopolized market for themselves with products not rivaling in terms of price or segments. Then the companies operate much lower than the actual production capacity so the output volumes are always lower than the demand in the market. This then creates an opportunity for dealers & investors to exploit the customers by charging excessive amounts called premiums (own/ on money) & the undocumented profit is allegedly shared by the companies.

During the last few decades, various governments often make huge claims of taking measures to curb the menace of on-money culture, but practically nothing much has been done to eliminate this when the solution is perhaps easier than it looks. For example, In Japan owners of a new Toyota Land Cruiser J300 must sign an agreement to not resell the vehicle for at least 12 months after taking delivery but if they do, they won’t be allowed to buy another Toyota. How simple is that?

Related: A Market Where Cars Are Expensive Than Residential Property

Cars are generally considered a mode of transportation meant to take you from point A to point B in a rather dignified manner. Around the world, cars have a certain cost of purchase which depreciates over a period of time. As the car becomes old, it requires frequent maintenance as parts tend to lose their efficiency due to wear & tear.

used in
Prices of some used cars across the border

Plus in developed markets, it’s mandatory to keep the car in utmost working order which is a hassle of its own due to which people prefer trading their vehicles in favor of new ones. Furthermore, as the technology moves on, newer cars offer features that are not available in the older models, and with government bodies keeping a strong check & balance on safety, emissions, fuel efficiency, and other key areas, customers always get a better deal buying a newer car replacing their slightly older ones. In most cases, new models are priced lower than the preceding model due to immense competition in developed markets.

20191203122202 Skoda showroom

However, in our market cars are treated as an asset, the value of which appreciates over a period of time instead of depreciating. Due to the absence of proper public transport, people prefer to have a car & opt for it as their daily commuter or buy more than one car dedicated to different people in the family.

Related: Anticipation of 1 Million Units & the Sudden Brake

Also due to protectionist government policies, we haven’t yet been able to develop a competitive automobile market as the industry is a hostage in the hands of a few companies who operate as a cartel by safeguarding each others’ interests & not introducing rival products in terms of price or segment. Furthermore, the prices of cars are revised ever so often due to various reasons including depreciation of currency as well as taxes & duties imposed by the government. Despite claiming to have achieved up to 70% localization, local assemblers have raised the price of their products in tandem with the value of the rising dollar against the rupee.


The increase in prices during the last few years has been so outrageous that most of the locally assembled cars sold in our country have already become more expensive than residential property. Today in Karachi, a small (new) apartment costs between PKR 6.5 million to PKR 8.5 million whereas medium-range new property costs between PKR 7 million to PKR 12 million. Of course, there is a vast variation in prices particularly when you consider the area, the accommodation, and various other factors however the idea is that the sort of money one spends in buying automobiles (which are considered consumables elsewhere) in our country can instead buy you a decent residential property.

zameen bahria
A few classified ads show brand-new one-unit bungalows that are cheaper than a locally assembled Honda Civic RS

A quick search on property portals shows us that a brand new (ground plus one) bungalow in Bahria Town which is a newly built posh locality on the outskirts of Karachi can be purchased for around Rs 9 million which is less than the price of a locally assembled 1.5L Honda Civic RS in Pakistan.

Related: 5 Years Old But Double the Price in Used Car Market

Listed below are cars that are available for over PKR 7 million in our market. And let’s not bring in the likes of German luxury cars into the debate which have always been expensive however the sort of cars that are mentioned below are in no way considered luxury vehicles in any part of the world and are in fact rather ordinary mass-produced vehicles.

Make/ Model Price Origin
Honda HR-V VTi PKR 7,199,000 local assembled
Honda HR-V VTi-S PKR 7,399,000 local assembled
Honda Civic Standard PKR 7,779,000 local assembled
Honda Civic Oriel PKR 8,099,000 local assembled
Honda Civic RS PKR 9,199,000 local assembled
Honda CR-V 2.0 CVT PKR 10,700,000 CBU imported
Honda Accord 1.5L VTEC Turbo PKR 15,499,000 CBU imported
Toyota Hilux E PKR 10,316,000 local assembled
Toyota Hilux Revo G 2.8 PKR 11,184,000 local assembled
Toyota Hilux Revo G Automatic 2.8 PKR 11,728,000 local assembled
Toyota Hilux Revo V Automatic 2.8 PKR 12,969,000 local assembled
Toyota Hilux Revo Rocco PKR 13,675,000 local assembled
Toyota Rush G A/T PKR 8,329,000 CBU imported
Toyota Rush G M/T PKR 8,009,000 CBU imported
Toyota Prado TX 3.0D PKR 27,930,000 CBU imported
Toyota Prado VX 3.0 PKR 39,270,000 CBU imported
Toyota Prado VX 4.0 PKR 41,410,000 CBU imported
Toyota Corolla Altis Grande X CVT-i 1.8 Black Interior PKR 7,039,000 local assembled
Toyota Hiace Standard Roof PKR 12,299,000 CBU imported
Toyota Hiace High Roof Commuter PKR 14,079,000 CBU imported
Toyota Hiace High Roof Tourer PKR 16,049,000 CBU imported
Toyota Hiace Luxury Wagon High Grade PKR 19,769,000 CBU imported
Toyota Fortuner 2.7 G PKR 14,230,000 local assembled
Toyota Fortuner 2.8 Sigma 4 PKR 17,175,000 local assembled
Toyota Fortuner 2.7 V PKR 16,297,000 local assembled
Toyota Fortuner Legender PKR 18,112,000 local assembled
Toyota Corolla Cross Low Grade PKR 12,249,000 CBU imported
Toyota Corolla Cross Smart Mid Grade PKR 13,099,000 CBU imported
Toyota Corolla Cross Premium High Grade PKR 13,419,000 CBU imported
Toyota Prius S PKR 14,649,000 CBU imported
Toyota Coaster 29 Seater F/L PKR 25,189,000 CBU imported
Toyota Camry High Grade PKR 47,559,000 CBU imported
Toyota Land Cruiser ZX Gasoline 3.5L PKR 138,319,000 CBU imported
KIA Sportage FWD PKR 7,350,000 local assembled
KIA Sportage AWD PKR 7,900,000 local assembled
KIA Sorento 2.4 FWD PKR 8,472,000 local assembled
KIA Sorento 2.4 AWD PKR 9,178,000 local assembled
KIA Sorento 3.5 FWD PKR 9,178,000 local assembled
KIA Grand Carnival Executive PKR 15,129,000 CBU imported
Hyundai Tucson FWD A/T GLS Sport PKR 7,464,000 local assembled
Hyundai Tucson AWD A/T Ultimate PKR 7,969,000 local assembled
Hyundai Staria 3.5 A/T PKR 8,364,000 CBU imported
Hyundai Staria 2.2D M/T PKR 8,499,000 CBU imported
Hyundai Staria 2.2D A/T PKR 8,909,000 CBU imported
Hyundai Staria HGS PKR 11,009,000 CBU imported
Hyundai Sonata 2.0 PKR 8,724,000 local assembled
Hyundai Sonata 2.5 PKR 9,484,000 local assembled
Isuzu D-Max Hi Spark 4×2 Single Cab Standard PKR 7,000,000 local assembled
Isuzu D-Max Hi Lander 4×4 Single Cab Standard PKR 8,200,000 local assembled
Isuzu D-Max Hi Lander 4×4 Double Cab Standard PKR 9,600,000 local assembled
Isuzu D-Max V-Cross 3.0 PKR 11,100,000 local assembled
Isuzu D-Max V-Cross Automatic 3.0 PKR 11,800,000 local assembled
Changan Oshan X7 Comfort PKR 7,999,000 local assembled
Changan Oshan X7 FutureSense PKR 8,599,000 local assembled
Proton X70 Premium FWD PKR 7,190,000 local assembled
Haval H6 1.5T PKR 8,525,000 local assembled
Haval H6 2.0T AWD PKR 9,749,000 local assembled
Haval H6 HEV PKR 11,095,000 local assembled
MG HS Essence PKR 8,199,000 local assembled
BAIC BJ40 Plus PKR 10,585,000 local assembled
Chery Tiggo 8 Pro PKR 9,299,000 local assembled

Above are only what’s considered mass-market offerings elsewhere. Luxury cars such as those by Audi, BMW, and Mercedes in Pakistan are much more expensive than these and hence are not included in the above list.

Related: Economic Advisory Group Says Auto Policy is Damaging for Consumers

The prices of these vehicles are way out of the reach of many and this is one of the core reasons why sales of new cars in Pakistan are constantly on the decline. These cars are available for much lesser prices in other parts of the world but the outrageous pricing of these “locally assembled cars” in our market either shows how incompetent the government authorities are, or how neglected the auto sector is, where consumers are at the mercy on the companies who can sell substandard, feature-ripped and often obsolete cars at a much higher price than a property asset.

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