Amid the rising cost of raw materials, logistical hurdles, and the chipshortage, the automakers are planning to increase the prices of vehiclesvery soon.
Media reports suggest that the companies are only holding back due to thegovernment’s request, despite the ongoing supply-chain crisis around theglobe. While talking to the media, an industry source added that the pricescould go up by five percent, starting from November 1, 2021.
Chairman of Pakistan Automotive Manufacturer’s Association (PAMA) and CEOof Toyota Indus Motor Company (IMC), Ali Asghar Jamali, also said that thevehicle prices could go up “any time now” as the companies have beenobliging the government’s request to maintain the vehicle prices for sometime.
The recent depreciation of the Pakistani rupee has also played a huge rolein increasing the production costs for the automakers.
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Arsalan Hanif, an analyst at Arif Habib Limited, explained that the carmanufacturers have sustained up to 80 percent impact of the rupeedepreciation in manufacturing cost, as the CKD kits imported from othercountries contain all components of the vehicles that are assembled inPakistan.
Despite the duty and tax reliefs provided to the automakers following theintroduction of the 2021-22 budget, the companies are currently strugglingto maintain vehicle prices due to the rising production costs, which isgradually pushing the auto industry towards an impending wave of pricehikes.
