The Monopoly of Big 3 in Pakistan’s Automobile Industry

Leaders of pakistan’s automobile industry

Three big companies i.e. Suzuki, Toyota, and Honda are ruling in Pakistan’s Automobile Industry for decades and one is here to set them accountable for their price strategies. It’s an important question that must be asked from these companies that they working for decades in Pakistan but still, they are not able to build their manufacturing factories in Pakistan. They are just assembling and when most of the spare parts are exported from different countries like Japan, these parts become expensive when they are exported and because of this car prices are very high as compared to our neighboring countries.

These big three companies create a monopoly by introducing the same model with improvement in just a few features of car but demand high prices as they have introduced a full-featured new car. They are just modifying a few parts and sometimes they introduce no innovation in new models as compared to the previous model.

pakistan's automobile industry

It’s the biggest example is Honda City which has continued with slight changes in exterior design and headlights. Honda has recently launched the 6th version of Honda city which is actually a new version of the model that was launched in 2016, means it’s not a new model it’s just ha new version of the previous model but still it’s the price is higher which is between PKR 2,599,000 to PKR 3,174,000. This company is not delivering any new and good features which must be included if they are charging this much amount. They don’t have enough airbags in the car to prevent passengers from serious injuries.

Suzuki Mehran is also a question like what is in it to pay 0.8-0.9 million for it. It doesn’t even have any new feature in it, not a single airbag in it. It’s a question for Pakistanis for what they are paying this much amount while buying Suzuki Mehran. These companies are looting Pakistanis continuously without providing them good featured cars and by setting unjustifiable prices for these scrap cars.
Now it’s a necessity of time to set Constitution for these big famous companies to make them accountable for their prices and the Government of Pakistan and the Supreme Court of Pakistan must control these car mafias.

Recent Scam of Suzuki:

The government of Pakistan gave relief to the people of Pakistan by reducing the tax duty on locally assembled cars which includes Suzuki Alto. Tax duty was 17% before the tax reforms and when the fiscal year 21-22 started government reduce this tax to 12.5% but when people booked Suzuki Alto and the company sent them their invoices they charged 17% and according to one study they have made the corruption of about 700-900 million. Who is going to make them accountable? It’s a question for the Pakistani Government

Related Article: Elon Musk: Future of Tesla in Pakistan in 10 years

Recent Scam of MG:

MG is continuously booking cars but they haven’t delivered a single car. They are making lame excuses that due to covid their production is facing problems but if they are not producing cars then why they are continuously booking cars, they should stop their booking. A lot of people have paid their amount but they haven’t received their cars.

Why car prices are so high in Pakistan?

As compared to Suzuki and Honda Toyota provides a little bit of good featured cars with better facilities. Toyota Corolla has much better features but its price is so high than its manufacturing cost. So just providing a few good features make Toyota confident to increase prices of their own choice. However, the road clarity of the Toyota Corolla is also poor. Its brakes are also very poor that if the driver is driving above 80km/h, the car starts to topple if you apply brakes.

There is a page ” COMBAT( Campaign Against Monopoly of Big Three) on Facebook that is raising voices against the monopoly of these big three companies. The followers of this page are not only running Campaign Against these companies but they have also started writing letters to the supreme court of Pakistan. As there are these three companies working well in Pakistan, they have fewer competitors so they have created Monopoly. They are doing whatever they want and no one makes them accountable for it.

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