While car prices hikes have been customary in the country’s automotive sector, the PDM regime has witnessed an unprecedented surge in increases, with vehicle assemblers raising prices notably over the last 16 months, all while facing persistent inquiries from the Sub-Committee of the Public Accounts Committee (PAC) regarding consumer concerns.
Historic Car Prices Surges
Amid the PDM tenure, the Pakistani rupee’s value saw a 58% drop against the dollar, coinciding with Prime Minister Shehbaz Sharif’s departure from office. Despite heightened localization efforts, price increments across vehicle models aligned with rupee devaluation, notably more for pricier variants due to reduced localization. This scenario underscores how rupee depreciation significantly drives up the costs of imported components, illuminating the diverse localization extents undertaken by vehicle assemblers across different tiers.
As a result, the price disparity between the pre and post-PDM era becomes evident.
Honda Car Prices:
| Variants | Price (Pre PDM Era) | Price (Post PDM Era) |
| Hodna City CVT | Rs. 3249000 | Rs. 4929000 |
| Honda City 1.5L CVT | Rs. 3446000 | Rs. 5549000 |
| Honda City Aspire 1.5L CVT | Rs. 3749000 | Rs. 5979000 |
| Honda City MT 1.2L | Rs. 3129000 | Rs. 4799000 |
| Honda Civic 1.5L MCVT | Rs. 5399000 | Rs. 8599000 |
| Honda Civic RS 1.5L LLCVT | Rs. 6499000 | Rs. 10199000 |
Suzuki Car Prices:
| Variants | Price (Pre PDM Era) | Price (Post PDM Era) |
| Suzuki Wagon R VXR | Rs. 2019000 | Rs. 3718000 |
| Suzuki Wagon R VXL | RS. 2129000 | Rs. 4084000 |
| Suzuki Wagon R AGS | Rs. 2319000 | Rs. 4366000 |
| Suzuki Cultus VXR | Rs. 2250000 | Rs. 3718000 |
| Suzuki Cultus AGS | Rs. 2662000 | Rs. 4366000 |
| Suzuki Swift GL MT | Rs. 2694000 | Rs. 4256000 |
| Suzuki Swift GL CVT | Rs. 2908000 | Rs. 4547000 |
| Suzuki Swift GLX CVT | Rs. 3169000 | Rs. 4960000 |
Kia Car Prices:
| Variants | Price (Pre PDM Era) | Price (Post PDM Era) |
| Kia Picanto Automatic | Rs. 2500000 | Rs. 3350000 |
| Kia Sportage FWD | Rs. 5500000 | Rs. 8190000 |
| Kia Sportage AWD | Rs. 6000000 | Rs. 8820000 |
| Stonic EX | Rs. 4150000 | Rs. 5350000 |
| Stonic EX Plus | Rs. 5445000 | Rs. 6050000 |
Toyota Cars Prices:
| Variants | Price (Pre PDM Era) | Price (Post PDM Era) |
| Toyota Yaris GLI 1.3L CVT | Rs. 3109000 | Rs. 4801000 |
| Toyota Yaris ATIV CVT | Rs. 3109000 | Rs. 4801000 |
| Toyota Corolla 1.6 MT | Rs. 3749000 | Rs. 6182000 |
| Toyota Corolla 1.6 AT | Rs. 3929000 | Rs. 6782000 |
| Altis Grande CVT Black Interior | Rs. 4689000 | Rs. 7812000 |
| Fortuner Hi Petrol | Rs. 10949000 | Rs. 18114000 |
The committee voiced dissatisfaction over consumers’ imposition of extra charges post-full payments, leading them to sign affidavits under duress; an instance involved a PAC member facing an additional Rs1 million fee upon vehicle delivery. It was disclosed that a substantial portion, from 42% to 56%, of the total vehicle expense is allocated to diverse taxes benefiting the national treasury, with the remaining proportion left for the assemblers.
Historic Car Price Surges Seen Under PDM Governance
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The committee highlighted the government’s lack of significant efforts to incentivize car assemblers for vehicle exports and address the shortfall in meeting international quality and safety benchmarks.
Share your perspective on the remarkable surge in car prices during the PDM regime by leaving your thoughts in the comments below.
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Why have car prices seen a significant increase during the PDM Governance?
Car prices have surged due to various factors, including currency devaluation, taxation, and the level of localization.
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How has the Pakistani rupee’s devaluation impacted car prices?
The devaluation of the Pakistani rupee has led to higher costs of imported parts and materials, driving up overall vehicle prices.
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What role does taxation play in the price hikes?
A notable portion, ranging from 42% to 56%, of the total vehicle cost is directed towards different taxes, impacting consumer prices.
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Has the government encouraged car assemblers to focus on exporting vehicles?
The committee noted that the government’s efforts to promote vehicle exports have been insufficient, contributing to the pricing issue.
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Are there concerns about the quality and safety standards of locally assembled vehicles?
Yes, the committee has highlighted a deficiency in meeting global quality and safety standards, which can affect consumer confidence.
