Following the government’s announcement of withdrawal of taxes on vehicles, the auto companies have announced a reduction in car prices.
“Indus Motor Company has slashed prices in the range of Rs100,000-400,000 on different variants and models in line with the government’s initiatives,” said Indus Motor Company CEO Ali Asghar Jamali while talking to The Express Tribune.
Indus Motor reduced the price of Yaris GLi MT 1.3 by Rs100,000 to Rs2.4 million. Earlier, the car was sold for Rs2.5 million. The company cut the price of Corolla Altis Grande X CVT 1.8 variant by Rs110,000, which declined from Rs3.98 million to Rs3.87 million.
Following a reduction of Rs350,000, Toyota Fortuner 2.7G will be available at Rs7.65 million. Earlier, the vehicle was sold for Rs8 million.
The price of Toyota Hilux Revo G MT fell from Rs6.55 million to Rs6.43 million, a reduction of Rs120,000. Pak Suzuki Motor Company also came up with the price reduction and slashed the price of Alto VX by Rs85,000 to Rs1.13 million. The vehicle was earlier available at a price of Rs1.198 million.
Prices of other variants of Alto was reduced in the range of Rs98,000-112,000. The company also lowered the price of Suzuki Bolan VX from Rs1.134 million to Rs1.049 million.
Prices of different variants of Cultus were reduced by Rs125,000-155,000. Similarly, prices of WagonR models of the company were cut in the range of Rs110,000-130,000.
Auto parts makers unhappy
Pakistan Association of Auto Parts and Accessories Manufacturers (Paapam) Chairman Abdul Rehman Aizaz expressed surprise over the government decision of reducing the additional customs duty on the import of completely knocked down (CKD) and completely built up (CBU) car parts, though the raw material imported by vendors under SRO 655 was not exempted. Terming it highly regrettable, he said that it went against the government’s vision of employment generation.
With regard to recent SRO 845(I) 2021, automobile expert Mashood Ali Khan said that the additional customs duty on raw material was hampering the growth of auto parts manufacturing segment.
“This action will not benefit the local parts manufacturing segment, which is one of the most essential industries in Pakistan,” said Khan.
For fostering the growth of this vital sector and to substantially reduce the cost of production, the government must accord special importance to the auto parts segment and reduce the additional customs duty on raw material imported by it, he said.
New auto policy
Jamali, who is also the chairman of the Pakistan Automotive Manufacturers Association (Pama), said that the industry appreciated the announcement of new auto policy, which would be implemented in August 2021.
Many players would reveal their investment plans and introduce locally produced hybrid electric vehicles in Pakistan under the policy, he said. “I am confident that all stakeholders including customers, industry, auto parts makers and the government will reap equal benefits of the new auto policy,” Jamali said.