MoIP to Hold Another Meeting With Automakers Over Unjustified Price Hikes
Yesterday, Engineering Development Board (EDB) held a meeting with the heads of various local automakers to discuss the recent price hikes.
The attendees included CEOs of Toyota IMC, HCAR, LMC, Pak Suzuki Motor Company (PSMC), Al-Haj Automotive, United Motors, Regal Automobile Industries, Master Changan Motors, Hyundai Nishat Motors, Sazgar Engineering Works, as well as the representatives of EDB and MoIP.
According to our sources, MoIP raised serious objections regarding car manufacturers not providing their respective cost structures. It argued that the rate of price hikes is much greater than that of the US Dollar (USD) value hike against the Pakistani Rupee (PKR).
In an official notification, EDB had told the companies to share their respective cost structures and valid reasons for price hikes. Out of eleven automakers, only a few shared their details, while others failed to do so.
Automakers were adamant that they have no choice but to increase the prices of their cars due to rising raw material costs, shipment costs, and devaluation of local currency. A Pak Suzuki Motor Company (PSMC) representative claimed that the increase in production costs has reduced the company’s operating profit.
Representatives of other companies stated that the increased freight charges in the global market have also contributed to price hikes. They highlighted that a freight container that previously cost $3,000, now costs $6,000.