After back-to-back hikes in car prices, Senate standing committee on industries and production has taken the notice again. Senate body has raised the serious concern over the unchecked jumps observed in vehicle prices.
In a meeting of the senate standing committee at the parliament house, senators discussed the issue. They claimed that with the monopoly in the country, automakers take the rupee depreciation as an excuse. Concerning “ON” money and late deliveries, committee members purported that dilly-delaying is just a tactic to earn more in the name of “ON” Money.
The committee discussed the regulation to fix the car prices and rationalize the auto industry. Steel and Iron prices are also emphasized to be regularized.
Automaker reciprocates Same Way – The Blame Game
The car companies responded the same way the senate panel blamed the car companies for price hikes. Automakers hold the government’s not-well-thought economic policies responsible for the prevailing fuss.
These are the government’s series of economic gaffes and blunders that urged the car companies to announce production cuts. Furthermore, car makers claimed that LCs restriction from the state bank of Pakistan caused delivery delays.
Honda Reduced its Production by 40%
The pandemic-led supply chain issues still prevail, forcing the automakers to observe production cuts. Honda has reduced its production by 40% amid supply chain and logistics issues. The company is facing difficulties increasing car production in the second half of FY2023.
Reports have revealed that Honda’s Saitama assembly plant in the north of Tokyo will bring its production down by 30%, whilst Suzuka plant in western Japan will reduce its production by 40% approximately.
The Japanese car giant has disclosed that ongoing semiconductor chip shortage and logistics delays are the aftershocks of COVID-19. The production hiccup will affect the Honda Civic, Vezel, and Stepwgn.