In Pakistan, the matter with car costs has gotten so bad that car manufacturers are raising prices basically every month. The government recently became aware of the problem and sought to scrutinise it. However, the government’s efforts to resolve this issue are failing to benefit the automobile industry.
The businesses have repeatedly cited rising currency rates and raw material prices as explanations for their automobile pricing increases. Last month, the government chose to employ a private business to perform a forensic audit of Pakistani car costs to determine whether these claims are true.
Read more: Car prices to be fixed in Pakistan under new regulatory body
EDB’s Meeting with the car manufacturers
The government has ordered the manufacturers to disclose their overall costs in order to justify the price hikes, which has stimulated the investigations. The Engineering Development Board (EDB) has notified ten automakers that they must disclose their costs and meet in the EDB Committee Room to discuss the matter.
The notice has been sent to the following car manufacturers.
- Toyota Indus
- Honda Atlas
- Pak Suzuki
- Lucky Motor (Kia, Peugeot)
- Al-Haj Automotive (Proton)
- United Motors
- Regal Automobile (Prince DFSK)
- Master Changan
- Hyundai Nishat
- Sazgar Engineering (Haval, BAIC)
The auto sector is resisting the government’s attempt to take control of the issue. When the government talked about the forensic audit the last time, PAMA Director General Abdul Waheed Khan stated the government couldn’t fix automobile prices because Pakistan is a free market. Car pricing are set by the market, not by the government. Furthermore, Toyota Indus’ CEO claims that car manufacturers will not reveal their cost structures since they are classified information.
Meanwhile, Pakistan is experiencing political unrest, and no political party has the power to pass legislation to limit pricing.
