KARACHI - The prices of locally-manufactured cars are being slashed to boost sale of the vehicles as the industry is facing a serious recession due to a variety of reasons, it was learnt on Tuesday. The market sources told The Nation that the major auto assemblers were planning to reduce prices of CBU and CKD units of various cars models and engine variants with an objective to revive the sales growth of their respective companies. In order to attract more buyers to bring back towards auto market, the price war among indigenous auto producing companies is yet to start. These companies could offer new prices by launching catchy promotional campaigns. In this way, the locally-produced car prices will be more affordable for the buyers. In this context the Pak Suzuki Company Limited, the largest auto assembling company in the country is set to hold a high-level meeting this week in Thailand to discuss companys sales strategic plan for different regions and countries, sources said. The new sales strategy is expected to be implemented within few weeks once the management of the PSC gets approved the key points of the scheme relating to upgrade sales structure and marketing operations, sources added. It must be noted here that when contacted Pak Suzuki Company to know its official version on this probable development, the spokesman of the PSC was not available for comments. It is worth noting is that the Indus Motor Company is not thinking over to reduce cars prices at least in the short-run despite facing losses in revenue and profitability amid rising production cost and significant depreciation in Pak Rupee. Such type of any proposal is not currently under consideration, IMC official responded when he questioned about that the cut in the auto prices was on the cards for the some time now? It is pertinent to mention here that Ghandhara Nissan Ltd. has reportedly decreased car prices upto Rs 0.1 million (1 lakh rupees) on different models for a limited period of time. Meanwhile, market analysts are of the views that t he four wheelers demand in the domestic market is envisaged to improve at slight level by the end of current quarter of FY09 (April-June 2009) in the wake of anticipated cut in interest rates by SBP. However, at the same time a sharp recovery in the demand of cars is not expected during the period under review due to vigilant lending policies of banks amid economic slowdown and significant increase in NPLs of the banks, as infection ratio in auto loans increased by 120bps to 5.9 percent in December 2008 versus 5.7 percent in the same period of preceding year. The domestic auto industry has been facing a severe demand desiccation in the wake of dual impact of deteriorating economic situation and rising production cost amid significant depreciation in Pak Rupee. Kamran Rehmani, research analyst at first capital is of the opinion that tough economic & political situations, lower consumers' disposable income, soaring auto financing rates and record high price level are the major culprits behind toppling auto demand across the industry.