In the recent two years, the prices of cars in Pakistan have gone very high, and it is almost impossible for the middle class to purchase a car. It has also impacted the car financing sector badly, and there is a huge decline in sales of car in 2019 and 2020.
Due to the reason of price hike of local assembled vehicles, the government and auto sector might be reviewing the prices of vehicles in December.
The Chief Executive of Indus Motor Company (IMC) Ali Asghar Jamali talked to a group of journalist and said that the major hike in the prices of vehicles was due to taxes imposed by the government, and any relief in taxed would ultimately result in reduction of prices. This is a good news for both the consumers and auto-manufacturers.
Responding to a question, Jamali said, “We have included various proposals to regulate black marketing or premium funding for the sale of new cars. However, as sales tax is subject to approval by the provincial government, consensus between the Center and the provinces has been problematic.”
Sharing the effects of the market downturn and factory closure following the outbreak of Covid-19, he said the entire automotive industry was in deep trouble during the nationwide closure. He also added that all car manufacturers had lost a lot while not a single car was manufactured by the top three OEM manufacturers (OEMs) in April.
“However, not a single employee was fired from his job until we offered our sellers interest-free money; we remain committed to our goal of promoting local engineering institutions in Pakistan”, he said. The IMC official said the pressure began to rise in July and due to high demand, the company went on to produce two shifts, which would help meet demand and reduce delivery time.
“IMC has been striving to meet the expectations of its customers and one of them is their first delivery. We are happy that the production of two shifts will fulfill our commitment to them”, he added. It will be noted that Toyota’s production was good at the beginning of this calendar year as total production was more than 4,000 units in January for the month (MoM) increased by about 90pc. However, due to the locking of the floor, production has stopped until May 19; the situation improved in September with the production of more than 4,300 units.
The IMC CEO called on the government to support Pakistan’s largest producer sector that employs three million direct and indirect workers and proposed a ‘Made in Pakistan’ policy to promote industrial development.
“The automotive sector sees a bright future and has a significant impact on the government’s economic goals, as long as there is a predictable and long-term car policy in place,” he concluded.