In the last nine months, Pakistani automakers have raised prices by as much as 47%. The corporations have explained the increases by blaming the growth in transportation and raw material prices as well as the depreciation of the local currency.
Reasons Behind The Massive Price Hikes
- EDB has explained the 47% rise in car prices over the previous nine months by pointing out a few important difficulties.
- According to the Board, the local currency declined by 31% over that time.
- According to EDB’s research, “the unfavorable parity of the rupee-dollar and increased tariffs and taxes on the sector led to an increase in car prices in Pakistan.”
- Another significant element in Pakistan’s rising car prices is the rise in freight rates. In a single year, the freight rate increased by more than 250 percent.
- Increases in the cost of raw resources are a significant contributor to rising automotive prices.
- The high price of raw materials has increased the cost of production and logistics.
- EDB said that increases in tax rates and import restrictions had also contributed to an increase in operational costs.
- The car industry is only using 35% of its overall manufacturing capacity as a result of the policies put in place in May 2022.
- Prices have increased as a result, and fixed operating and technical expenditures have also increased.
