Why did the car prices in Pakistan suddenly start decreasing? – Business & Economy

Over the past few days, the Pakistani automotive industry scene has taken a surprising turn, and the ever-increasing car prices have suddenly come crashing down. What has been announced?

This trend of price cuts started with the reduction of the price of the model “Stonic” of “KIA” (Stonic) by more than Rs. , and following that the price of Suzuki Swift was announced to be reduced by more than 7 lakh rupees.

Such drastic price cuts are rarely seen in Pakistan’s automotive industry and people are asking what happened to bring the sky-high prices down.

However, in March 2024, the government introduced further changes, imposing a 25 percent GST on all cars with a pre-GST value of more than Rs 40 lakh. In response, Toyota and Honda quickly cut their car prices to ensure that their vehicle variants stay below the Rs 40 lakh threshold to cushion the impact of the new tax. might Subsequently, Kia and Suzuki also reduced the prices of the Stonic and Swift respectively in line with the revised GST norms.