KARACHI – Pakistan’s automobile market is witnessing shakeup as car companies slash prices and roll out massive installment packages to lure buyers. The move comes after months of sluggish sales, as consumers avoided new cars due to inflation and economic slowdown, leaving the auto industry struggling with reduced production and declining sales.
In bold attempt to revive demand, carmakers combined price cuts with free maintenance, extended warranties, and attractive installment plans. Experts say these measures are a clear sign that companies are not just clearing stock—they’re also strategizing to meet next year’s sales targets.
Auto Dealers said several auto giants claim to be manufacturers, but in reality, they are assemblers. At a time when importing cars is restricted, prices were first inflated excessively. Only 150,000 cars were assembled and sold this year, compared to 350,000 in the past by just three companies. Now, they have had to roll out these ‘discount packages.’”
When a company slashes Rs2.5 million off a single car, one has to question their profit margins and how they exploited Pakistani buyers. The government should push for local manufacturing and a proper localization policy instead of assembly.
Changan Pakistan became the first to announce massive reductions. Alsvin Black Series Sedan: Price cut of PKR 200,000 + two years of free maintenance (offer valid until Dec 31, 2024). Discount packages worth up to Rs500,000, including cash discount and two years of free servicing. The company said the offer is aimed at buyers postponing new car purchases due to high maintenance costs.
Experts believe Hyundai’s packages will strengthen its position among middle and upper-middle-class buyers who prefer installments over cash payments. 18-month installments of 277,757 or 24-month installments of 208,325, with a total down payment of 4,890,000. Experts predict that hybrid cars are becoming the future due to rising fuel and electricity costs, making this package highly attractive for efficiency-conscious buyers.
Toyota made headlines with jaw-dropping reduction in Fortuner prices: Fortuner Price cut of over 2.5 million to 12,430,000. Fortuner V: Price reduced by 2,570,000 to 14,930,000. This is considered the largest price cut Toyota has ever made in Pakistan.
The coming months will reveal whether these offers are short-term incentives or the beginning of a price war in Pakistan’s auto sector. The sudden reductions, experts say, also raise questions about actual production costs and profit margins, hinting that local car companies may have benefited from years of non-competitive practices.
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