A meeting of the Senate Standing Committee (SSC) on Industry and Production chaired by Senator Khalida Ateeb took place today. During the meeting, the SSC members voiced their concerns about the rising car prices, delivery delays, and other pertinent industry-related issues in Pakistan.
According to a briefing from the Engineering Development Board (EDB), the reasons for rising car prices are as follows:
- Rupee-Dollar disparity
- Freight costs
- Input material costs in the local and international markets
- Cost of business
- Import restrictions
Interestingly, EDB also pinned the blame on “improvements in vehicle models” for the price hikes. It bears mentioning that the improvements in are only in a select number of high-end car models.
The economy cars still only have the basic features including two airbags, an infotainment system, ABS brakes, AC, stereo, etc. A price increase of 20-30% doesn’t seem justified against such minor “improvements”.
EDB’s briefing about car prices also suggests that more price hikes are ahead. Toyota Indus Motor Company (IMC) has already increased the prices of some of its cars and more price hikes are expected.