Why are car prices too high in pakistan ?

Why are car prices too high?

Why does a car in Pakistan costs double the price it costs in other countries?

We need to know the following reasons to understand why.

Custom and duty on imported cars

If a car is being imported from a foreign land, there will always be customs duty tax attached to it, but a few months back Pakistani government increased customs duty by 30%.

So custom duty on  New Sport-Utility Vehicles (SUVs), New All-terrain vehicles, New Cars and Jeeps 1801cc-3000cc, New Cars and Jeeps above 3000cc, New Cars and Jeeps Above 2000cc, New Cars and Jeeps Above 2500cc,  and new other vehicles was increased from 50% to 80%.  So a 30% increase in customs duty tax, resulted in car prices getting really high.

Too many stakeholders, dealers in between

An imported car passes by too many hands before it reaches the dealers in your specific city or area. With each passing hand, the price is increased, thus the final road price for the consumer gets extremely high. Almost double the original price.


Auto Sector of Pakistan is still struggling

Pakistan doesn’t have the best auto industry, it is a struggling and growing market. Old models launch in Pakistan after years and they are way more expensive. One of the reason is that the auto industry is still in its adolescence. New companies are not investing, but if they do and Pakistan starts to manufacture cars, the prices will automatically go down, but rather investing our current auto industry plants are being shut down due to the decline in the auto industry