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Govt asks car-makers to explain price-hike without govt OK

JAVED MEHMOOD

ISLAMABAD: The Ministry of Industries and Production has issued show cause notices to the local car manufacturers who have enhanced the prices of four-wheelers without prior approval from the government, it was learnt on Friday.

Almost all the local car-makers, Toyota, Nissan, Suzuki, Honda, etc., have recently increased the prices on the grounds that the value of yen has appreciated in the recent past that has caused extra burden on the production cost of four-wheelers.

When contacted Chief Joint Controller, Prices and Supply, Ministry of Industries and Production, Choudhry Ali Ahmed confirmed that show-cause notices had been issued to the manufacturers for arbitrary increase in prices of cars.

"We have asked the manufacturers to submit a written reply explaining under what circumstances the prices were increased and that too without getting approval from the authorities concerned," said Ali Ahmed.

Sources in the Ministry said that the car makers had also been directed to submit a comprehensive report for the last one year showing variation in the prices of cars.

They have been asked to submit reasons for increase in the value of four-wheelers during the last year, to enable the ministry to ascertain whether or not the variations in prices were justified, said sources.

Last year a famous manufacturer in Pakistan increased the prices of four-wheelers on its own and the ministry swiftly issued a show cause notice for violating prescribed rules and regulations.

However, the manufacturer proved that there was a major change in the value of yen and there was no other option but to pass this impact on to consumers.

Sources claimed that Japanese manufacturers have a complete monopoly in the manufacture of cars in Pakistan and this factor was also responsible for frequent increase in the value of four-wheelers.

The Ministry of Industries and Production should devise a strategy to check this monopoly and control hike in prices of cars, said sources.