August 4, 2002	Sunday	Jamadi-ul-Awwal 24,1423

KARACHI, Aug 3: “Locally assembled cars are expensive by three to 50 per cent as compared to Indian cars,” reveals a comparative chart, prepared by the Engineering Development Board (EDB) on car prices prevailing in India and Pakistan.

According to the chart, Suzuki Mehran 800cc standard and A/C models are priced at Rs299,000 and Rs349,000 as compared to Maruti (Euro II) at Rs259,000 and Rs310,000.

Cultus 1000cc in Pakistan is 25-30 per cent expensive as compared to India. It is available here at Rs504,000 (standard) and Rs555,000 (A/C) as compared to Rs388,000 and Rs442,000 in India where it is called Zen LX and Zen VX.

In India, the Alto VX and AX 1000cc are tagged at Rs417,000 and Rs440,000 as compared to Rs419,000 and Rs464,000 in Pakistan.

Surprisingly, Baleno 1.6 is cheaper in Pakistan at Rs785,000 than India’s Rs864,000.

Hyundai Santro GE and GS are sold at Rs419,000 and Rs434,000 as compared to India’s LE and LS models at Rs337,000 and Rs423,000 respectively.

The price of Fiat UNO 1.7D and 1.7DS in Pakistan is Rs565,000 and Rs599,000 as against Rs375,000 and Rs409,000 in India where it is known as UNO 1.7 Trend.

The EDB has conducted the study while taking the Pakistani rupee rate at Rs61 against a dollar and Rs49 to a US dollar in India.

On the argument that the cars are expensive in Pakistan, EDB, in its study, terms the contention to be false despite the fact that the car volumes of Pakistan is 40,000 units per annum as compared to 650,000 units per annum in India. Auto analysts, however, consider EDB’s claim of competitive prices in Pakistan an eyewash as only three cars are priced lower in India when compared with prices of their equivalents in Pakistan. These include Baleno and two models of Honda City. City’s two models are priced at Rs735,000 and Rs785,000 while in India they sell at Rs738,000 and Rs820,000.

The EDB has made this analysis to combat the impending threat of used car imports. Car demand had suddenly picked up in the last few months due to bookings of 20,000 cars but the EDB says that it does not reflect the true demand.

The increase in demand comprises investors’ lobby pumping megabucks into it. Additionally real estate money and currency exchange money had been invested in car speculation, the study says.