Shershah Kabari Market in Karachi is renowned for availability of all types of auto parts, engines, spare parts & accessories but in past few years it is losing customers due to increased prices of car engines for different vehicles including Toyota Vitz, XLI Corolla & Daihatsu Mira.
The increase of price is due to multiple factors including higher duties, taxes, expensive dollar and decrease in smuggled items being sold at the market.
Engine prices for 2021 are as follows in comparison with previous rates:
Car | Model | 2021 Prices | 2018 Prices |
Daihatsu Mira | 2011 | Rs 22,000 | Rs 14,000 |
Toyota Vitz | Rs 45,000 | Rs 22,000 | |
Toyota XLI | 2007 | Rs 70,000 | Rs 30,000 |
Importers are paying custom duties of up to Rs. 40,000 and Rs. 115,000 for four-cylinder & six-cylinders while previously they paid only Rs. 15,000 & Rs. 30,000, respectively. This increase in tax is reflected in the increased prices in the market.
The hike is not limited to car engines other parts and accessories have also became expensive:
Car | Model | 2021 Prices | 2018 Prices |
Daihatsu Mira | 2004 | Rs. 30,000 | Rs. 12,000 |
Toyota Vitz | Rs. 55,000 | Rs. 28,000 | |
Toyota Xli | 2004-2008 | Rs. 60,000 | Rs. 30,000 |
While talking with media, importer and trader Mohammad Ibrahim, said that higher taxes have shrunk the business to only 25% only. Another auto parts dealer, Mohammad Ayub, said that they have to idly wait for customers as the sales have reduced 50% in last 2 years.
President Anjuman Welfare Shershah Kabari Market Malik Zahid Dehalvi also shared similar concerned. He said that the intentional higher taxes and duties imposed to reduce imports have resulted in engines and auto parts getting costlier by 50%.
By Mubashir Mahmood. He tweets @mubashirmahmood