Why the local car manufacturing companies in Pakistan unilaterally increasing the prices on day-to-day basis?
The prices of vehicles depend upon various factors including:
- Rupee-dollar parity
- Freight Cost
- Input material Cost in international/ local market
- Cost of doing business
- Improvements in vehicles introduction of additional features
- Import compression policy
- High Taxes
In Pakistan, the government does not regulate the prices of auto sector through a price fixation policy.
Also Read: Why prices of cars in Pakistan are higher than in India?
The policy of government has been to promote industrial activities through competition among local auto manufacturers leaving market forces to determine open market value in the automotive industry.
The intention of government has been manifested through the Automotive Development Policy, 2016-2021 and same principal was maintained in the Auto Industry Development and Export Policy, 2021-2026 with enhanced emphasis on localization of parts.
