Car price hike have been the norm in country’s auto industry but in a surprising twist of fate, PDM regime observed a record increase. In the past 16 months, vehicle assemblers have raised prices significantly despite consistent questioning from the Sub-Committee of the Public Accounts Committee (PAC) regarding issues affecting consumers.

During the PDM tenure, the Pakistani rupee’s value against the dollar has fallen by 58%. This decline happened on the same day that Prime Minister Shehbaz Sharif left office.

Despite a higher degree of localization, the price hikes for various vehicle models are in line with the devaluation of the rupee. In the case of more expensive variants, the price hikes are even more pronounced due to lower localization.

This situation highlights how the depreciation of the rupee significantly contributes to the increased cost of imported parts and accessories, thereby revealing the varying degrees of localization implemented by vehicle assemblers, both at lower and higher levels.

Here is the price difference between pre and post-PDM era:

Honda Cars

Suzuki Cars

Kia Cars

Toyota  Cars

The committee expressed displeasure regarding the imposition of additional fees, even after consumers had made full payments to the companies, which consequently coerced them into signing affidavits. In a particular case, a PAC member was subjected to an additional charge of Rs1 million upon receiving the vehicle.

The committee was briefed that a significant portion, ranging from 42% to 56%, of the overall vehicle cost is directed towards various taxes for the national exchequer, leaving the remaining share for the assemblers.

The committee noted that the government did not put forth substantial endeavors to encourage car assemblers to engage in exporting their vehicles, and there is also a deficiency in meeting global quality and safety standards.

What’s you take regarding the staggering increase in car prices in PDM regime? Drop your thoughts in the comments section.