Pakistan’s automotive Industry in 2022

With the day-by-day increase in the economic challenges in Pakistan, experts predicted that the interest of automotive sales has increased by 90% in the 11 months of 2021.

But now after changing the policy by the government of Pakistan of giving relief in taxes, experts are now working and predicting how it will go in 2022.

Increase in Auto sales

Improvement in the automotive structures and increase in population has increased the auto sales volume because now most the people prefer to use their personal vehicles in order to make their living standard good and also for moving from one place to another.

The increase in auto sales in Pakistan’s Automotive Industry is also due to increase in the macroeconomic rate. And experts foretell that it will increase up to 50% in the first nine months of 2022.

Price hikes in automotive

An Analyst, Muqeet Naeem said that increasing rates and limitations would hurt the auto demand in the future. Moreover, analyst Wasil Zaman said that there will be a great decline in auto purchasing in the coming years due to an increase in taxes and price hikes. So, also by looking at currency devaluation and conditions of Pakistan’s Automotive Industries, it was decided that further price hikes can never be appreciated, which results in an increase in sales and a decline in prices.

Reduced Taxes in automotive

As the Automotive industry was the highest tax-paying industry at the time. In the beginning, the government asked the industries to keep their prices constant as it decreased the taxes on the industry. It reduces the sales taxes from 17.5% to 12.5% for the cars that are below the 1000cc category. As a result of which the companies reduced the prices in the range of RS 60,000 and RS 400,000. Moreover, the government also wants to make the way easier for the manufacturing of hybrid cars.

Passenger Cars

New car models have also been introduced this year. However, we saw a hike in car prices such as a price hike with 7% Honda, 6% Toyota and a 14% increase in Pakistan Suzuki cars. We shared some stats of the current years according to Pakistan’s automotive industry in 2022. They are given below.

1. January 2022

Following is a brief comparison of the interest ratio of different brands’ vehicles is presented below. According to the experts, it is a very worrying circumstance for the future of the automotive market in Pakistan. This industry demands attention from the responsible.

2. February 2022

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