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Industries and Production Committee Irked by ‘Own Money’ Issue

The members of the Standing Committee for Industries and Production met with two major automakers on Tuesday to discuss Pakistan’s auto industry of Pakistan.

The members of the committee were reportedly unhappy with the rising prices of cars, delayed deliveries, and the subsequent rise in the ‘own money’ culture, and a group of four committee members headed by Senator Faisal Sabzwari, visited the Lucky Motor Corporation Ltd. (LMCL) and the Indus Motor Company (IMC).

Upon being asked about the solution to the problem, the CEO of the IMC and Chairman of the Pakistan Automotive Manufacturer’s Association (PAMA), Ali Asghar Jamali, told Dawn News,

I have given a suggestion to fix the registration of cars in the name of customers at the dealers’ end in Karachi, Islamabad and Lahore initially. Besides, we are also increasing production capacity to meet the increasing demand.

He added that the committee had not asked Toyota about the price increase in detail.

“We have shown [them] a regional price comparison in which Pakistani made Toyota Corolla has still been the cheapest,” Jamali told the committee, and added that the cars could be made even cheaper if the government offers further reductions in the tax rates.

The Chief Executive of LMCL, Asif, Rizvi, stated that the depreciation of the local currency against the US Dollar (USD) is to blame for the escalating prices of cars. He added that Kia has been consistent with its pricing but the Completely Knocked-Down (CKD) kit imports have become more expensive because of the recent surge in the value of the USD.

Rizvi reasoned that the shortage of the semiconductor microchip, the increased costs of raw materials, and the rise in freight charges have all affected the price hikes. He also requested the committee to ask the government to formulate policies that encourage the local manufacturing of vehicles.

During their visit, the committee also assessed the quality measures in the local assembly plants of the automakers.

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