Govt to initiate regulatory measures against auto companies
While taking serious notice of frequent price hikes by the local car manufacturers, the Ministry of Industries has warned the private companies of initiating regulatory measures against the historic increases in car prices. “The government may take regulatory measures which may include fixation of prices under the Price Control Prevention of Profiteering and Hoarding Act, 1977,” said the ministry in a statement.
According to the ministry the local car assemblers have been frequently increasing prices of automobiles during the past few months. The ministry has expressed concern over price surge and has taken a serious view about the frequent price increases by local automobile manufacturers/ assemblers.
The ministry, through the statement, said that the situation was unacceptable, and the government might consider initiating regulatory measures which may include fixation of prices under the Price Control Prevention of Profiteering and Hoarding Act, 1977. Furthermore, it said that the cost structure and justification of price increase had been sought from local manufacturers and assemblers.
Meanwhile the ministry, through a notice issued to at least 11 auto firms in the country, has directed the CEOS and heads of the companies to be personally present in a meeting scheduled to be held on May 20, 2022 to respond to the queries.
The automobile companies are also directed to share the cost structure and provide justification for the recent price increases by May 7, 2022. Companies to which notices have been issued included Indus motors, Honda Atlas, Pak Suzuki, Lucky motors, Al Haj Automotive, Al Haj FAW motors, United motors, Regal Automobile Industries, Mastar Changan motors, Hyundai Nishat motors and Sazgar Engineering Works.
It may be recalled here that last month the ministry of industries had announced to carry out forensic audit/analysis of the price hike.
During a meeting of the monitoring committee for automobile industry presided over by Federal Secretary for Industries and Production Jawad Malik, the committee had expressed concerns over massive price hikes in the past 5-6 months and safety features in automobiles.
The Ministry of Industries and Production had decided to hire the services of private firms or experts to probe the matter. After due deliberations, the committee directed to carry out forensic analysis of car prices in comparison with factors indicated by the industry as a reason for price change through independent professional expertise. Secretary Industries, sources say, has instructed to complete the forensic analysis within two weeks.