LAHORE – The prices of cars have seen a sharp increase in 2023, the car manufacturers are of the view that continuous production disruptions and continuous fall in the value of the rupee have led to a sharp increase in prices.
They declared the year 2023 as a dark year for Pakistanis economically. According to the details, there are some reasons for the continuous increase in the price of cars, some of which are the increase in the price of raw materials, import restrictions, and increase in taxes due to which prices shoot up.
Apart from that increase in freight charges, and logistic constraints especially due to the fall in the value of the rupee, the price of cars has increased significantly. Alhaj Automotive Company, the assembler and seller of Proton cars in Pakistan, has announced a huge price hike, according to which the price of the X70 Premium has been increased by a lump sum of Rs. 2.1 million after which the car price has touched to 9.2 million from its previous price of Rs. 7.2 million.
Talking about Saga Standard (Saga Standard M/T), its price has increased by 9 lakh twenty thousand rupees, the previous price of the vehicle was 28 lakh twenty-four thousand rupees, which has now become 37 lakh forty-nine thousand rupees. Getting a new car turned into a hard-earned luxury amid a huge surge in prices that left many buyers reeling.
Major reasons behind uncontrolled car prices are massive depreciation of the local currency and hefty taxes amidst record inflation that almost crushed the idea of a common man getting a new car or upgrading the existing ride. Various sectors have different expectations from the budget, and people linked with the auto business are eyeing some relief but media reports suggest otherwise.
It has been learnt that the incumbent government, which is negotiating with the global lender to get bailout funds, is mulling imposing a Withholding Tax on locally produced cars on the basis of invoice price rather than engine capacity.
Amid contrasting reports, Pakistan Automotive Manufacturers Association reportedly approached the country’s top tax collection authority and warned that such moves will impact sales and that’s at a time when the auto industry faced back-to-back blows.
