Automobile prices up by 149pc during 2018-23: PBF

LAHORE (APP) - Pakistan Business Forum (PBF) said on Wednesday that the automobile sector had raised prices by 149 percent during 2018–23, linking it with the dollar rate against the Pakistani rupee, and now vehicle prices have reached the highest level of their history.

According to PBF Vice President Ahmad Jawad, three major automobile companies in Pakistan have revised their prices three times in just one and a half months as the rupee has depreciated against the US dollar.

He mentioned and urged the big three automobile companies to reduce their vehicle prices and withdraw their last two circulars regarding price hikes issued after January 12, 2023, now that the Pakistani rupee was on the ascendant, as its value had appreciated substantially against the US dollar, i.e., from Rs 277 to Rs 261.

He said that an analysis of car and bike prices increasing vs cost – adjusting to taxes from 2018-23 revealed that car prices were up by 149 percent and auto parts prices increased to 90 percent from 33 percent, while PKR depreciation was 71 percent.

Ahmad Jawad went on to say that vehicle prices in Pakistan were much higher than in neighbouring countries, which the government should seriously consider, arguing that the vehicles in India were more cost-effective for customers, even after currency conversion between the Indian rupee and the PKR was taken into account.

In response to a question, Jawad stated, "No doubt, cars are expensive, but the real issue is that buyers do not get the best value for their money," adding that overpricing, especially without international safety and quality features, was the real issue.

The PBF Vice President said that unfortunately, the country’s automakers transfer the burden straight away to the end buyers instead of reducing/managing their profit margins in the volatile economic situation.

Jawad asserted that the industry should be asked to explain how different things – taxes, dollar rate, and local production of parts – influence the prices, and the government should also monitor the prices of automobiles.