Govt Wants Automakers to Explain Reasons for Rising Car Prices

Govt Wants Automakers to Explain Reasons for Rising Car Prices 1

A parliamentary committee on Thursday, while expressing concerns over the rising prices of automobiles in the country has decided to call Federal Minister for Industries and Production and representatives of automobile manufacturers in next meeting to explain the reasons of higher car prices.

Related: Senate Displeased on Auto Industry for Low Quality and High Prices

Senate standing committee on Industries and Production, which met under the chair of Senator Ahmad Khan, has discussed the issue of rising cars prices in the country. The committee members have noted that automobile companies are increasing the prices without bringing any improvement or additional features in the vehicles. They said that people could not think to buy new cars due to their higher prices. The committee noted that companies are increasing the prices at their own, while always making the excuse of increasing dollar value and government’s taxes.

Govt Wants Automakers to Explain Reasons for Rising Car Prices 2

Senator Bahramand Khan Tangi said that there is no authority in the country, which could control the vehicles prices. He said that automobile manufacturers had not taken any measures for local production of the cars, which are made by importing their spare parts from other countries. Quoting the report of Competition Commission of Pakistan, he said that automobiles had received more than Rs 6,000 billion from the consumers in Pakistan. He said that prices of cars are almost double when compared to India and Bangladesh.

Related: Are Local Assembled Cars Only Expensive?

Committee Chairman said that automobile manufacturers are importing parts from other countries despite there are many production plants in the country. He said that other countries are producing electric vehicles and we could not establish plan for hybrid cars.

Govt Wants Automakers to Explain Reasons for Rising Car Prices 3

Senator Asif Kirmani said that, cars prices are very high in the country which is around Rs 4 million, whereas it should be around 1 million rupees. The companies are looting people by charging higher prices. He said that government should ban local manufacturing as it is not producing standard vehicles in the country despite charging higher prices.

Related: Poor Quality Cars in Debate on Mainstream Media

Later, the committee has decided to call Federal Minister for Industries and Production Hammad Azhar and representatives of cars manufacturing companies in next meeting to explain the reasons of higher prices and other related issues. The committee has sought explanations in terms of standard of cars, imported parts, profits of the companies, features & equipment provided in vehicles from the government and cars manufacturing companies.

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About UsmanAnsari

A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com

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