The automotive industry increased prices by 149% between 2018 and 23 by tying them to the dollar's value vs the Pakistani rupee, said Vice President of Pakistan Business Forum (PBF) Ahmad Jawad while talking to the media. He said that in response to the rupee's depreciation against the US dollar, three major vehicle businesses in Pakistan changed prices three times in one and a half months.

The Pakistani rupee is now showing an upward trend, as its value has increased significantly against the US dollar from Rs 277 to Rs 261, he said. He urged the three big companies in the automobile sector to lower their vehicle prices and withdraw their most recent two circulars regarding price hikes issued after January 12, 2023.

Jawad said that an examination of the price increases for cars and motorcycles from 2018 to 23 adjusted for taxes showed that the price of cars climbed by 149%, the price of auto parts increased by 90%, while the depreciation of the Pakistani rupee was 71%. Ahmad Jawad said that the government should give serious consideration to why car prices in Pakistan are significantly higher than those in its neighbouring countries, even after taking into account currency conversion between Indian and Pakistani rupees.

He regretted that the country's automakers immediately shift the burden to final consumers rather than cutting their profit margins in the precarious economic scenario. While emphasising the promotion of the car sector, he urged the government to also take price control mechanisms into consideration.

The PBF vice president suggested that the industry should be pressed to explain how various factors, including taxes, the exchange rate, and local parts manufacturing affect costs, and that the government should also keep an eye on car prices. In response to a query, Jawad remarked said cars are undoubtedly costly, but the actual problem is that the purchasers do not receive the greatest value for their money. He said that overpricing and a lack of international safety standards and quality features are real issues.

Credit: Independent News Pakistan-WealthPk