Govt Asks Car Companies to Share Their Cost Structure

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The situation with car prices in Pakistan has become so destructive that automakers are hiking the prices almost every month. The government has recently taken notice of the stumbling block and tried to investigate. But the government’s efforts to fix this issue are not going well for the auto companies.

The companies have cited the increasing dollar rate and raw material costs as the reasons behind their car price hikes, time and time again. Last month, the government decided to hire a private firm to conduct a forensic audit of the car prices in Pakistan to see if these reasons are valid or not. 

EDB’s Meeting with the Automakers

Taking the investigation up a notch, the government has asked the automakers to share their cost structure to justify the price hikes. 10 automakers have received a notice from the Engineering Development Board (EDB) to share their cost structure by the 7th of May, 2022, and then meet on the 10th of May to discuss the matter in the Committee Room of EDB.

The notice has been sent to the following car companies.

  • Toyota Indus
  • Honda Atlas
  • Pak Suzuki
  • Lucky Motor (Kia, Peugeot)
  • Al-Haj Automotive (Proton)
  • United Motors
  • Regal Automobile (Prince DFSK)
  • Master Changan
  • Hyundai Nishat 
  • Sazgar Engineering (Haval, BAIC)

The auto industry is showing resistance to the government taking control of the situation. Last time, when the government spoke about the forensic audit, PAMA Director General Abdul Waheed Khan said that the government cannot fix car prices because Pakistan has a free market. The market decides car prices, not the state. And now CEO Toyota Indus says the car assemblers won’t share their cost structures as they are classified information. 

Looks like the situation with car prices is going to get messier. Let’s see who shows up in the meeting tomorrow and what happens in the Committee Room of EDB. Stay tuned to find out. 

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  1. Captain says

    Despite price hike, Civic Oriel and RS delivery time is after 1 year as recently went to show room. If this reaction of buyers, then Companies would tend to increase prices. Why can’t buyers boycott and become rational? Investors and ON MONEY needs to be investigated and brought to Justice. only then genuine price and buyers would be in harmony.

  2. Ali Khan says

    “And now CEO Toyota Indus says the car assemblers won’t share their cost structures as they are classified information. ”

    How can this be classified information if this data is accurately required when these companies pay their taxes? Also, don’t all local assemblers pay taxes on all CKD kits and all assembled vehicles? The government can easily get the pricing and profit. Worked with MG didn’t it?

    More importantly, please look up “Monroney Sticker”. This is required by law in the US. (Other nations have their own versions). This legal sticker must be on all vehicles sold in the US. It has information such as how much of the vehicle is local made parts how much is imported parts. More interestingly it must, by law, have the company profit, dealer profit, shipping cost etc. displayed! My simple question is such information is by law shared by these same companies in the US and other nations. Why is this classified in Pakistan?

    Lastly “Pakistan is a free market”. Really? Then why are used imports so demonized and over taxed? It is a free market after all isn’t it? Or is it only free as long as these companies get to have their cake and eat it too?

  3. Khurram says

    As long as people with indifferent hearts are sitting among public nothing wise can be expected to be thought out at top because people in power are coming from public and public in its current mode is passing through worst social mode. Rule breaking , lack of observing right of moving first and even standing without getting a vehicle damaged on a signal is spreading rampantly on our roads. Just imagine what would happen if persons such as wrongdoers are in the E.D.B.? Well everyone’s interest is going to be scratched off the list unless a fat bag of money very like the one captioned in the article’s image is deposited.

  4. Faisal Iqbal says

    Its not so confidential atleast in case of Indus Motors or others listed on stock exchange, they need to report quarterly earning reports to their investors.

  5. Raja Maja says

    Include Motor Bike companies too.

  6. Syed Mahmood Ahmad says

    Our corrupt officers and government can not get relief for people, they care about their cut only.

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