True even now people driving around in imported accidental Japanese cars is mind boggling. There are plenty of cheaper options available locally but still imported alto can be seen driven by many.
Main components such as engiene and electronics are still being imported which is the biggest cause of high price. Second coat is that of high tax on vehicles above 1200cc. Third domestic extorionists are in play here as well. Parts market also acts like a mafia. Some parts manufacturers are only on paper and they further subcontracted to Chinese manufacturers. I say this on good authority bcz a friend is doing wholesale of imported parts for all top 3 manufacturers. Not only their quality is good but also they are cheaper than locally made parts.Yes! Until this is not done, there will be small group of extortionist. Also important to note is size of market so economy of scale.
I m in no way in favor of business model in Pakistan of assembling cars. But you cant expect these prices if volumes are few thousands. And assemblers too know how to extort money. They slow down production, to keep demand high. On a slight increase of dollar, they increase prices multiple times. Their excuse, they import most of the components. The government should step in and induct this mafia to either export vehicles or pack up.
To give an example. Honda Civic in Canadian market is made in Canada, entirely. Its price is slightly less than the price of Civic in Pakistan! In last year's exchange rate, Civic in Pakistan costs C$27,000. Top class model here costs C$30,000. The one comparable to Pakistan is $25,000. These are prices which approximately include dealer discounts. As dealers here compete with each other to sell cars, not like Pakistan.
Now compare the Canadian economy to Pakistan's.
I can tell you I have seen both models in showrooms. The Canadian Civic is so much better built.
2025 Honda Civic 4 Door Sedan: Hybrid and Petrol Trims | Honda Canada
Choose your ideal 2025 Civic Sedan! Compare fuel-sipping hybrid trims to sporty petrol options. Find the features, style, and power that perfectly suit you.www.honda.ca
Yes! Until this is not done, there will be small group of extortionist. Also important to note is size of market so economy of scale.
I m in no way in favor of business model in Pakistan of assembling cars. But you cant expect these prices if volumes are few thousands. And assemblers too know how to extort money. They slow down production, to keep demand high. On a slight increase of dollar, they increase prices multiple times. Their excuse, they import most of the components. The government should step in and induct this mafia to either export vehicles or pack up.
To give an example. Honda Civic in Canadian market is made in Canada, entirely. Its price is slightly less than the price of Civic in Pakistan! In last year's exchange rate, Civic in Pakistan costs C$27,000. Top class model here costs C$30,000. The one comparable to Pakistan is $25,000. These are prices which approximately include dealer discounts. As dealers here compete with each other to sell cars, not like Pakistan.
Now compare the Canadian economy to Pakistan's.
I can tell you I have seen both models in showrooms. The Canadian Civic is so much better built.
2025 Honda Civic 4 Door Sedan: Hybrid and Petrol Trims | Honda Canada
Choose your ideal 2025 Civic Sedan! Compare fuel-sipping hybrid trims to sporty petrol options. Find the features, style, and power that perfectly suit you.
