In Pakistan, increase in car prices is no longer a new thing for consumers. Crippling inflation and the dollar’s growing profile against the rupee have urged the automakers to announce price hikes in a row this year.
Following its peers, Lucky Motors Corporation also shot up its vehicle prices significantly and now falls among the highly expensive cars in the country.
Here is how much the Lucky Motors Increased their car price since January.
Why Car Prices Increased So Drastically?
As per the report, since the inception of this year, car prices have observed an enormous hike of 47%. EDB stated that the Rupee devaluation of 31%, coupled with a massive increase in duties and taxes by the incumbent government on the automobile sector, has nudged the car prices to cross the limit line.
Moreover, the burgeoned freight charges and raw material costs added more to the pain. Surprisingly, freight has increased by 250% during the last nine months. Similarly, production costs and logistics also increased due to expanding raw material costs.
On the contrary, the Public Accounts Committee and Pakistan Institute of Development Economics (PIDE) report has narrated a different story. Research states that things are deliberately manipulated to earn some extra amount.
As per the report, “car assemblers have a capacity of 400,000 units but produce only 200,000 a year, ensuring a shortage prevails in the market.” This is how monopolists supply less than market demand in a way to keep a low supply of vehicles. The reason behind the sin is “ON Money” – a black-market premium collected by car makers, dealers, and inside traders.
What do you think about the EDB report revealing how much all the car companies in Pakistan have increased their car prices since January? Drop your thoughts in the comment section.
