Local Automakers Continue To Ripoff Customers With Exorbitant Freight Charges

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Fuel prices have seen a 6-year lowest mark in 2015. Petrol once at 114 rupees a liter is now priced at a humble figure of 70 rupees a litre. While this good news is bound to make the mango man happy, we ought to look for the compensation which should reach the consumers because of this global price reduction. We would like to shed some light on the exorbitant freight charges local assemblers have been charging us for long. Freight / destination charges include the transportation cost and insurance charges from the factory to the destination, which vary on the basis of distance from the assembling setup.

Despite the fact that government has increased the taxes on petroleum products, fuel prices have dropped by 38-40% in Pakistan within a span of a couple of months. Local manufacturers some how acted aloof to this  global change until recently when Pak Suzuki came with a good news of standardized prices across the country.  There is no freight charges on the purchase of any Suzuki vehicle. We should applause Pak Suzuki for this welcome gesture.

No Freight Charges on Whole Range of Pak Suzuki Vehicles

No Freight Charges on Whole Range of Pak Suzuki Vehicles

Now lets bring Toyota Indus and Honda Atlas in to the lime light. Just to get things started, Toyota Indus is charging 23,000 rupees as freight  in Rawalpindi / Islamabad and Peshawar as of today. It was 23,000 rupees when fuel price was at the peak and it is 23,000 when prices have dropped by a considerable percentage.  It is 20,500 rupees for most of the cities of Punjab including Lahore, Faisalabad and Multan. Honda Atlas competes with Toyota Indus in the similar fashion. The details of Honda Atlas’s freight charges are listed below:

Freight Charges. Courtesy ; Honda Altas website

Freight Charges. Courtesy ; Honda Altas website

We understand that this also covers the insurance cost of transportation as well, but freight charges should have been reduced due to the global price reduction in petroleum prices.

Another interesting angle is the difference of freight charges between Honda Atlas and Toyota Indus. Toyota Indus charges 20,500 rupees from Karachi to Lahore while Honda Atlas charges 14,000 from Lahore to Karachi. The unchanged freight charges is just one example of how local manufacturers are hoodwinking a common man.

Honda, Toyota and new entrants like FAW should come out and tell the people that why theses prices have not been reduced despite the drastic reduction in fuel prices and we should spread the word and raise this issue on every forum available to us.

Aspiring yet chaotic soul, high expectations,child like dreams, engineer by profession, disordered yet floating in the ocean of ideas to make this world a better place and still in the pursuit of finding my 'own self'. Besides professional commitments, I am a enthused automotive fan. Pakwheels blog is the outlet for all the automotive musings.

  • Saad R.

    True, For Honda (assembly in Lahore) if you are taking delivery in Lahore they manually drive the “zero meter” car from their assembly to the dealership which can easily cross 50-60 Km’s. Mine had 165 km on it when I took delivery and they claimed it undergoes some tests (i just hope these ‘tests’ were not performed by their reckless drivers DURING the transit from assembly to dealership).

    Secondly, you get the fuel below E when you get ownership. If they are charging for fright they should either use a trailer for local deliveries OR at least give a full fuel tank. Basically stop ripping us off

  • Bilal Ahmad

    The concern that charges haven’t changed with falling fuel prices is pretty valid, although for the difference of charges btw khi to lhr compared to the same way back isn’t limited to car delivery only. Check with any transporter, its the norm for this route.

  • umair

    only 30 kms is allowed and that is from the point where trailor leaves the vehicle to the showroom. There is no such testing that accounts for 167 kms for a new vehicle at the showroom. You should had declined the delivery

  • Farhan

    FAW does not include the charges in their invoices as Toyota or Honda does. FAW vehicles send their vehicles according to the dealer’s selected transporters and these transporters provide bilti/receipt to the dealer for transportation charges which can further be claimed by the customer.
    Yes I agree that the transportation charg

  • Anas

    charges not decreased even after rs. 43-44/litre reduction in prices of fuel. but as soon as fuel price will go up by rs. 2-3/litre, these freight charges will increase immediately.

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