Monday, October 3, 2022

Market decides the car prices not the state, says PAMA

Automobile manufacturers in Pakistan (PAMA) has blasted the government for its insistence on lowering car prices. Thet said in a free market consumers and not governments determine what cars cost. Pakistan’s government has ordered a forensic assessment of new automobile costs to conducted.

The public accounts committee requested the ministry of industries and production to look into recent increases in automobile prices. Since tax incentives have offered to PAMA, government authorities are asking them to explain why the prices of car vehicles are so much higher than those of competitors.

Pakistan is not a communist state with a centrally planned economy. The government cannot set the price of automobiles. Approximately 70 to 80 percent of the average passenger automobile has made up of steel imported from other countries, according to the PAMA. Steel costs, in turn, had a direct effect on the price of automobiles.

According to representative, freight expenses have risen by 300 percent, currency rates have risen, and raw material prices have also risen. There is a direct correlation between rising expenses and rising tariffs on these items. This means that vehicle assembly companies have little choice but to raise the price of automobiles.

Read Also: Toyota introduced the high end performance car segment as Corolla GR

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