While already struggling to rein in the prices of sugar, wheat flour, ghee/cooking oil, steel bars and cement, Prime Minister Imran Khan has now vowed to tackle the issue of high car prices and low auto-part localisation.
In the last week of 2020, the federal cabinet directed the Ministry of Industries and Production (MoIP) to look into the production capacity of existing carmakers that have failed to increase their output in line with market demand.
The cabinet directed the MoIP to look into the reasons as to why the foreign automobile manufacturers failed to indigenise car assembling through deletion programmes. The cabinet asked the ministry to make a presentation on this issue.
LAHORE: The Pakistan Association of Automotive Parts and Accessories Manufacturers has appreciated the prime minister for taking notice of higher automobile prices in the country, which is mainly.
LOCALLY-ASSEMBLED cars are on display at a showroom. File photo
ISLAMABAD: The Federal Cabinet has directed the Ministry of Industries to inquire into the production capacity of existing car makers, alleging that they have failed to increase their output as per the market demand resulting in overcharging and increase in prices of locally-assembled cars.
The minutes of the meeting held on Tuesday (Dec 29) stated that the “the cabinet directed the Minister of Industries and Production to look into the reasons as to why the foreign automobile manufacturers in Pakistan defaulted on indigenisation of motor vehicle manufacturing through deletion programme and make a presentation to the cabinet.”
A topsy-turvy year for carmakers
A topsy-turvy year for carmakers
Year 2020 was a topsy-turvy ride for the automobile sector ranging from high interest rates and declining demand to low rates and growing appetite.
Since 2019, the auto sector had been moving south in all segments - cars, tractors, two-wheelers, trucks and buses - with a hefty increase in cost of doing business resulting in price hike, said Pakistan Association of Automotive Parts and Accessories Manufacturers’ (Paapam) former chairman Mashood Ali Khan.
“In 2020, we were hit by the unexpected pandemic, forcing the manufacturers to completely shut down,” said Khan. “The impact was huge. Our supply chain, sales forecast, procurement and finances of all companies were deeply affected. Hefty losses were incurred by the entire industry.”