Here’s Why Automakers Haven’t Reduced Car Prices

Various tax reliefs for automakers should have helped reduce assembling costs, leading to a trickle-down effect to lower the prices of cars, but several days have transpired since the enactment of the 2021-22 financial budget and no automaker has reduced the prices of its vehicles. This has prompted people to question the integrity of the automakers in Pakistan yet again.


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To gain clarity on the issue, Dawn News reached out to an official Japanese automaker that requested anonymity. Its representative revealed that the companies are waiting for the government to release the Statutory Regulatory Orders (SRO) before they decrease their prices.

He added that the government finalized the SRO on Tuesday, and it is expected to be released in a press conference tomorrow. He clarified that only the Additional Customs Duty (ACD) needs to be included in the SRO and that the FED reduction has already become effective via the new finance bill.

The representative also disclosed that the companies have to pause the deliveries for July as no clear pricing guidelines have been issued by the government after the new budget and policy.


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He explained that although the new prices should become effective in July, the bookings of vehicles are being made at the old prices; and that once the price guidelines are set, the companies will refund the balance amounts to the customers at the time of the invoice deliveries of the vehicles.

The report detailed that, as per Dawn News’s sources, some carmakers are apprehensive about transferring the full impact of the GST and the FED reduction to the consumers as they believe that they may need to revise the prices again because of the high shipping and freight charges and the recent devaluation of the rupee against the dollar.

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