Local car assemblers turn down government’s request to reduce car prices

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Local auto assemblers and the government is on the table discussing how to tackle the drought faced by the local auto industry however, they are not willing to reduce the car prices.

Government had asked that if age of import of cars was reduced from five to three years, then auto assemblers must reduce the prices of cars by Rs50,000 to Rs100,000 per car instead, a proposition which was turned down swiftly but the auto makers.

A meeting took place between ECC and the auto assemblers and ECC had devised the agenda to push auto assemblers to reduce prices if age of used car imports was narrowed down.

Nothing substantial could be derived from the couple of meetings held between the parties but, some members of ECC were noted to have said;

“Local auto assemblers have played havoc with the public and charged exorbitant prices prior to the government’s decision to increase the age limit of imported used cars from three to five years under three different schemes.”

Meanwhile, H M Shahzad held another press conference where he requested the government to reconsider its plan to give more concessions to the local auto assemblers as they never obliged to government’s deletion policy under which all auto makers were supposed to gain a certain level of localization of vehicles assembled.

Till today, all of them remain automotive assemblers which import CBU (completely build units) or CKDs (Complete knock-down) kits from abroad and put them together.

As Mr. Shahzad said, “Except one company, which has carried out some tangible deletion in their 800cc models, the manufacturers are importing complete build-up units (CBU) and complete parts from Japan, Thailand, and other countries. None of them have made any progress in localization of engine, transmission or electrical components or assemblies etc.

It should however be noticed that imported cars come in smaller numbers (no bulk buying) and yet offer the most advanced technological cars the world has in a price (often cheaper) at which local auto assemblers offer cars which doesn’t even have basic stuff like ABS or Air Bags.

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  1. M.l. Ali says

    Honda probably has the most expensive of the local assembled cars and they posted a Gross Loss of Rs.44 million and Net Loss of Rs.532 million for FY 2012. How can you expect from these companies to reduced their prices without first aiding in the reduction of their input costs and cutting back taxes on CKD kits.

  2. Ali Faisal Chaudhary says

    just imagine how many honda civic 2012-2013 model sold as compared to feilder probox… other imported cars.

  3. Rehan Hussein says

    thumbs up 4 ur cmnt

  4. Sajid Hassan says

    yes I want to reduced car price because car companies made new models and price grows up.
    this is not good.

  5. Agha Mohsin says

    Again we will forcefully drive the local crap models, which were on roads back in early 90's and some are in 2000's. if they will start producing cars like currently we are driving japan imported in same price than there issues are justified but the current models oh! local assemblers get a life and let us openly decide what we want to drive in our limited budgets.and cars should be equipped like Hybrid, Abs etc.

  6. Muhammad Usman says

    No need of cutting back the taxes on CKD kits, they should manufacture these and all other parts within the country. It's there responsibility to become manufacturer instead of assembler. They sold for a long period these locally assembled cars. And even they are charging more than imported Japanese cars, there cars does not have basic safety equipment like ABS, Brake Assist, Air Bags, or facilities/securities like push start, climate control etc. They can ask for consideration if they are keeping there own part of the deal.

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