There has been an increase in the prices of cars manufactured in Pakistan since January 2018.
Increase made in prices of locally manufactured cars since January 2018 with date wise breakup is as follows;
Model Wise Suzuki, Honda and Toyota Car Prices Trend in Pakistan
It is worth noting that the above data has been submitted in the Senate by the Minister for Industries and Production.
The Minister for Industries and Production also dismissed the impression that prices of cars being manufactured in Pakistan are higher than the other regional countries.
For example, according to the minister, car prices in India are higher than Pakistan for higher capacity engine cars e.g. Toyota Corolla and Honda products whereas these are lower for lower capacity engine cars i.e. 1000cc.
The Senate was further told by the minister said that prices are governed by Market mechanism. The minister told that as such the government is not involved in regulating the prices.
In addition, the Minister for Industries and Production further apprised the House that the sale of the cars has declined during first eight months of the Fiscal Year (FY) 2018-19.
The sales declined due to following reasons:
- There was a ban on non-filers, preventing them from buying new vehicles from July 1, 2018 through the budget for FY 2018-19.
- Moreover levy of 10% Federal Excise Duty on sale of vehicles above 1700 cc has resulted in drop in sales of respective variants due to price increase.
However, the minister told that the federal government has taken following steps to increase the sale of those cars;
- Federal Government in Finance Supplementary (Second Amendment) Bill 2019 has withdrawn the restriction, allowing non-filers to buy new vehicles of any engine capacity.
- Federal Government has announced SRO 52(I)/2019 to curtail misuse of import schemes by commercial importers. Growth in volumes of local automobile manufacturers is expected in near future.