Car Prices in Pakistan are Extremely High – But Why? – Research Snipers

Car Prices in Pakistan are Extremely High – But Why?

Car prices in Pakistan are extremely high in comparison with the rest of the world. The question is Why?

Why does a car cost more than double the price it costs in the USA or India or China.

Let’s look at some of the reasons for the high prices of cars in Pakistan.

Customs Duty on Imported Cars

If a car is being imported from a foreign land, there will always be customs duty tax attached to it, but a few months back Pakistani government increased customs duty by 30%.

So custom duty on  New Sport-Utility Vehicles (SUVs), New All-terrain vehicles, New Cars and Jeeps 1801cc-3000cc, New Cars and Jeeps above 3000cc, New Cars and Jeeps Above 2000cc, New Cars and Jeeps Above 2500cc,  and new other vehicles was increased from 50% to 80%.  So a 30% increase in customs duty tax, resulted in car prices getting really high.


Toyota Camry price in Pakistan is 83 to 85 lacs while in Australia its 30 to 32 lacs, in the USA it is $23,495, in India, it is 33 to 43 lacs, in UAE its 27 to 37 lacs, so on and so forth.

Every country applies custom duty on imported cars, why then in Pakistan cars are way more expensive than the rest of the world? The silent factor, affecting not just car prices but the overall economy of Pakistan negatively is corruption.

Too many stakeholders, dealers in between

An imported car passes by too many hands before it reaches the dealers in your specific city or area. With each passing hand, the price is increased, thus the final road price for the consumer gets extremely high. Almost double the original price.

Auto Sector of Pakistan is still struggling

Pakistan doesn’t have the best auto industry, it is a struggling and growing market. Old models launch in Pakistan after years and they are way more expensive. One of the reason is that the auto industry is still in its adolescence. New companies are investing now which will create an overall better atmosphere and when cars will start manufacturing in Pakistan, the prices will automatically go down.

Local Car Manufacturers keep increasing car prices

Just in a couple of months, Pak Suzuki increased its car prices twice. Similarly Honda, Toyota also keep increasing their car prices, now and again, making life difficult for the buyers.

Read more: Honda Pakistan car prices increased