Pakistani Car manufacturer sees huge decline in their sales

With the massive increase in prices of cars in Pakistan due to dollar hike, Pakistani Car manufacturer sees huge decline in their sales after they have increased their car prices drastically.

Reason behind decline in sales:

The Big 3 car manufacturers and so called monopolists in Pakistan Toyota, Honda and Suzuki showed in recent stats that their cars sales are declined with large numbers in Pakistani car market after they have increased their prices due to increase in dollar price in open market according to them. As they have claimed huge amount of car parts are imported and trade is done in the form of Dollars. This ain’t the first time these manufacturers have increased their product prices they were already selling their products for much more prices than the actual value of their cars.

Who are suffering?

Pakistani car buyers are the ones who are suffering and bound to pay huge car prices in current circumstances for cheap quality local manufacturers build cars like Toyota Corolla, Honda City and Suzuki Wagon R (Used for Uber Careem). They are also paying huge own money (In lacs) aka premium to get theirs cars instantly if they don’t intend to wait for months to get their booked car delivery which is also a pain.

The other reason behind this price increase is car manufacture companies like Toyota, Honda and Suzuki are paying some sort of bribe in form of sales tax to Government in order to maintain their monopoly and to keep a hurdle for some international car manufacturers who are willing to enter into Pakistani car manufacturing huge industry. If international car manufacturer enters into Pakistan it will ultimately provide buyers more options in less price instead of buying current local car manufacturer’s overpriced, less featured and lack of safety feature cars.

Alternatives:

As an alternative Pakistani car buyers were able to buy used Japanese cars which were auctioned from Japan but the issue with them now is Government of Pakistan have changed the import policy and no such cars are now importing in large numbers. As a result these imported JDM’s like Daihatsu Mira ES are also overpriced and selling like hot cakes nowadays as new cars are not importing and many cars are at Karachi port waiting for their clearance from Government.

What Government should do?

Government of Pakistan should took firm steps to decline dollar price, Direct and facilitate local car manufacturers to start selling fully featured quality and safety featured cars by producing parts locally instead of importing them.

Also form a easy cars import policy as soon as possible in order to meet cars demand of Pakistani car buyers and to help buyers get the car in their budget without paying premium money or look up for a imported car which will also result in exporting too much dollars.

Like and comment on this post and tell us about your views of current decline in sales of car manufacturers in Pakistan.