Monday, July 22, 2024

Prices of Small Cars

Car aficionados anticipate that automobiles would become less expensive after the government’s regulatory duty on the import of mobile devices and vehicles is removed, but will this actually result in lower prices for cars?

As Japanese cars offer more possibilities than local vehicles, based on the interests of car enthusiasts, they are also interested in used cars imported from Japan, in addition to using locally produced vehicles. Japanese automobiles are frequently chosen as the best.

The federal government increased the regulatory charge on the import of used vehicles to 100 percent in June of last year with an expiration date of March 31, 2023, in an effort to reduce imports in light of declining foreign exchange reserves. The government hasn’t explicitly stated whether this obligation will be kept or eliminated, though.

The termination of the regulatory duty, according to auto dealers, will lower the cost of 1800 cc vehicles, but during the last year, the dollars’ worth has climbed by more than 100 rupees. Price drops on used cars are unlikely to be significant.

The sale of small vehicles fell by more than half in March of this year compared to March of last year, which is the main cause of the high pricing, according to data on the sale and purchase of new vehicles in the nation. There is an expansion.

Due to the dramatic rise in new automobile prices, buyers are turning to cheap and used cars, but these vehicles are also becoming more and more out of reach due to government regulations.

According to the data, a used 660 cc imported car cost between Rs 22 and 23 lakhs last year, but after 100% regulatory duty, it cost between Rs 33 and 34 lakhs. Even if the duty is lifted, the price of the dollar carat will not drop below 30 to 31 lakh rupees because it is currently in Pakistan talking to the stars.

Car specialists argue that it is incorrect to believe that the elimination of regulatory duties will result in vehicles being more affordable than they were, but the truth is that cars will continue to be expensive despite the elimination of RD because of the strengthening of the dollar.

The 660-cc car’s regulatory duty, which was first implemented in May of last year, has increased from around 6.5 lakh to more than 2.5 lakh.

A 1000 cc car’s pricing has climbed by Rs 5 lakh and a 660-cc car’s price has increased by Rs 3 to 4 lakh compared to previous year. Whether the car will cost the importer a lot of money is the question. How do you plan to sell?

According to FBR, anyone can import a new car into Pakistan if they meet all the regulations, which include paying duty and taxes, however used cars must be imported by Pakistanis living abroad.

The majority of used cars imported under the gift program. Currently, imports of vehicles older than three years are prohibited under the Import Policy Order 2022.

Mehjabeen Qasim
Mehjabeen Qasim
Business Journalist at Startup Pakistan

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