Here is the latest piece of news for you about the increase in car prices. The dollar rate is continuously rising in Pakistan. And that means new car prices could rise again. In the previous month or so, the price of the US dollar has hiked from Rs. 182 to Rs. 200. This is a serious threat to the economy, trade, and automobile market in Pakistan.
As we know that all automotive manufacturers imports majority of important parts to assemble the vehicles in Pakistan. They pay high duty and customs in dollars against imported parts. As a result, the prices are directly connected to the currency rate.
Will Car Prices Rise with Dollar Rate?
The concern is that will the prices of cars will go up with the increase in the US dollar rate once more. It’s worth noting that, since January 2022, practically all automotive manufacturers have raised the rates of their vehicles at least three times. They have mostly blamed the dollar rate for these increases. Furthermore, if the situation remains unchanged, we should expect another round of rate hikes in the following days.
Solution to this Dilemma:
The solution to this problem is the local production of automotive parts. The prices of vehicles will continue to rise unless these automotive companies begin actual local production of vehicle’s major parts. As a result, the local assembly will replace with local manufacturing and reduce your reliance on foreign currency.
Share your thoughts What do you think about it? Will local production help in reducing car prices in Pakistan?
