Where the local car assemblers are announcing back-to-back record-breaking price hikes in the face of an ongoing economic crisis, the federal Ombudsman has taken notice of complaints against the unilateral increase in the prices of locally assembled vehicles. The authority received a number of complaints from Karachi and other major cities.
In a notice issued to the Ministry of Industries and Production, the Federal Ombudsman has called for a detailed report narrating the price hike episode. It is noted that multiple price hikes within weeks without any oversight mechanism are simply maladministration. The Ombudsman further noted that it is Ministry’s responsibility to observe and regulate the prices.
Moreover, the Ombudsman also directed the Ministry of Industries and production to determine whether the auto assemblers are charging extra at the time of delivery of vehicles that had already paid the due price. And surprisingly, the Engineering Development Board (EDB) made some interesting revelations pertaining to the matter – narrating that it doesn’t carry any mechanism to keep an eye on price hikes.
Mind you, Toyota Indus Motor has increased their car prices three times in approximately a month. Whilst, Pakistan Suzuki Motor Company followed its fellow’s footprints – increased car prices twice in 45 days. And, the auto manufacturers are not just about to conclude the episode – a fresh price hike series is yet to shatter the customer’s purchasing power, which in turn is affecting car sales.
Car Sales In Pakistan Dropped by 65%
As per Pakistan Automotive Manufacturers Association (PAMA) report, car sales observed a record 31-month slump in Pakistan – dropping by 65% (year-on-year decline). PAMA has reported a month-on-month (MoM) decline of 36% selling 10,867 units in January compared to 17,012 in December 2022. Whilst passenger car sales decreased by 56%, sold 6,021 vehicles last month against 13,780 cars in Dec’22.
What do you think about the notice taken by the Federal Ombudsman? Would it be helpful in averting a fresh price hike? Drop your thoughts in the comments section.
