Govt mulls ‘fixing’ car prices in Pakistan

The government has issued a stern warning to all locally manufactured car assemblers against the recent price hikes.

According to the press release, the engineering board has asked all local manufacturers and assemblers to provide their cost structures and justification for the recent hikes by May 7, 2022.

The board has also summoned a meeting on May 10 with the respective CEOs of nearly all local automotive groups including Toyota IMC, HCAR, LMC, Pak Suzuki Motor Company (PSMC), Al-Haj Automotive, United Motors, Regal Automobile Industries, Master Changan Motors, Hyundai Nishat Motors, and Sazgar Engineering Works.

“The government might consider initiating regulatory measures which may include fixation of prices under the Price Control Prevention of Profiteering and Hoarding Act, 1977,” the press release stated.

The automakers, on the other hand, have also lambasted the government’s plan, saying that automakers can regulate the prices of their products where they see fit.

Two of the leading car manufacturers in Pakistan, Honda Atlas Indus Motor Company (also known as Toyota Pakistan) have recently increased the prices of their various car variants by up to Rs170, 000 and Rs580,000, respectively.

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