Amidst the peaking inflation crisis, Pakistan’s automobile users have a slight ray of hope in the 1000cc vehicle segment. The recent changes made by the government of Pakistan to ease the custom sanctions on CKD assemblies have sparked an interest in local middle-class consumers to buy 1000cc cars once they become cheaper. The past year has been highly disappointing regarding vehicle prices and fuel costs. Currently, the local market is dead with respect to car purchases and sell-offs. Will the new relaxation benefit middle-class car users? Let’s find out the 1000cc cars expected to become cheaper in the country.
Relaxation on Automobile Imports
The start of 2023 has been fortunate for automobile enthusiasts in the country. The government has decided to reduce the customs duty on the import of small vehicle assembly equipment. While we still await the effects to the surface, the revenue division has already issued a notification to make the amendments to the previous policy.
Previously, the customs duty on vehicle assembly kits was stuck at 30%. Local manufacturers imposed these costs on customers by increasing vehicle prices locally. Moreover, importing tire tubes for cars (1000cc and less) forced local importers to pay 25% duty fees.
New Duty Rates
After the government’s recent notification, the duty tax on the import of vehicle assembly kits (1000cc or smaller engines) has come down to 15%. The duty fee on the import of tire tubes has also come down to 16% from 25%. These two factors will influence the car prices of 1000cc vehicles in the country.
According to the notification, the 1000cc cars expected to become cheaper locally include Suzuki cars (Suzuki WagonR and Suzuki Cultus), Prince Pearl, KIA Picanto, and other cars in the segment. Currently, we await the new prices to come into effect. While true, local car buyers have aligned their hopes with reducing car prices to get their dream car in the 1000cc segment locally.