Passenger cars are getting more out of reach due to everyday price upsurges by the car assemblers. Since January 2022, automakers such as Toyota Indus Motor Company (IMC), Honda Atlas Cars (HCAR), Lucky Motor Corporation (LMC), and a few others have announced multiple price climbs for their respective locally assembled cars.
Engineering Development Board (EDB) has issued a harsh
warning to all local car assemblers in Pakistan against the recent price hikes.
According to an official document the board has asked all local assemblers to
provide their cost structures and explanation for the recent hikes upto 7th
May, 2022.
Automakers are inflexible that they have no choice but to upsurge
the prices of their cars due to rising raw material costs, shipment costs, and
devaluation of local currency.
The government is extremely worried and has taken a very
serious view about the frequent price increases by local automobile
manufacturers/assemblers. This state of affairs is clearly unacceptable and the
government may consider to initiate regulatory measures, which may include
fixation of prices under the Price Control Prevention of Profiteering and
Hoarding Act, 1977.
