KARACHI, May 31: Two of the three major automobile manufacturers on Saturday announced reduction in car prices, ranging between Rs2,000 and Rs17,500. The announcements came after a meeting with the Federal Minister for Industries and Production, Liaquat Ali Khan Jatoi.

A press release issued by the Press Information Department, the government said that car manufacturers had agreed to cut down prices on persuasion by the minister.

Honda Atlas Car announced reduction in prices of different models from Rs12,500 to Rs17,500. Suzuki Motor Company said it was cutting down prices of Suzuki Mehran standard by Rs2,000 and that of Mehran deluxe by Rs3,000.

Indus Motor Company Limited, the producers of Toyota cars, announced that the initial booking would be made from Rs100,000. Buyers would pay the remaining amount at the time of delivery. The company also said that it would increase production from 1,500 units per month to 1,800 units per month. Toyota also announced that the already paid advance would be adjusted by retaining Rs100,000 and refunding the balance.

The government press statement did not however mention if Toyota did or did not agree to a price cut, but observed that the minister appreciated that Indus Motors had made an investment of Rs400 million last year and the plant production had increased by 50 per cent. It said that 42,300 Toyota cars had been assembled in the last financial year, while 49,000 cars had already rolled out of the assembly line during the current financial year; the final figure was expected to cross 65,000 cars by the end of June.

The minister was also said to have appreciated increase in car production by Suzuki Motor company, which had climbed from 600 units per month two years ago to 1,000 units per month in the last financial year. Production of Suzuki cars had risen to 1,800 units per month in the current financial year and had reached 2,000 units per month from April 2003. “The minister said that automobile sector has grown up in double digits”, the statement said, adding, “The minister assured the industry on the continuity of the existing policies. He said that we want to strengthen the manufacturing base”.

The press release quoted the minister as saying that the government was committed to promote investment in the country to create more jobs for the people of Pakistan. The minister observed that the announcement of reduction in car prices was being down “in the interest of the people of Pakistan”. The statement stated that all the participants expressed satisfaction that premium in the market had already gone down and the deliveries of cars had also improved. “In the end, the minister assured the representatives of the automobile industry of complete support by the government”, the official press release said in conclusion.