The auto industry is preparing to announce a significant increase in vehicle prices.

ByShehryar Makhdoom | Published date:
the-auto-industry-is-preparing-to-announce-a-significant-increase-in-vehicle-prices

Because of increased raw material costs, logistical challenges, and a chip shortage, manufacturers expect to raise vehicle pricing shortly. Despite the global supply-chain crisis, media sources claim that corporations are only delaying because of a government request. According to industry sources speaking with the media, prices could rise by 5% on November 1, 2021. This would be effective immediately.

According to Ali Asghar Jamali, Chairman of Pakistan Automotive Manufacturers Association (PAMA) and CEO of Toyota Indus Motor Company (IMC), vehicle costs could rise "any moment now," as companies have been complying with the government's desire to keep vehicle prices for some time.

Automobiles' production costs have risen sharply as a result of the rupee's recent devaluation in Pakistan.

Automakers in Pakistan have seen their manufacturing costs rise by 75 to 80% due to currency depreciation. The CKD kits they purchase from other countries already contain all of the components needed to build their cars here.

Due to increased manufacturing costs, automakers are currently finding it challenging to keep vehicle prices stable despite the duty and tax relief offered by the 2021-22 budget. This is pushing the sector toward an upcoming round of price increases.

Comment