ISLAMABAD - The government on Wednesday admitted that some car assemblers were selling vehicles at higher rates and were not delivering some variants within the prescribed time of two months which was resulting in black marketing.
Minister for Industries and Production Ghulam Murtaza Khan Jatoi in his written reply said "It is partially true, that the prices of automobiles are high as compared to the global prices."
He said prices of Suzuki's Wagon-R and Swift are higher in Pakistan than India and Indonesia due to low volumes. Whereas the price of Toyota Altis produced in Pakistan is less than those prevailing in the regional countries.
The minister said prices of Honda City and Civic are also less in Pakistan as compared to prices of these vehicles in Thailand, Indonesia and Malaysia.
As per provided data, the price of Suzuki Wagon-R VXR is Rs10,74000 in Pakistan, where as it is being sold at Pak Rs85,1801 in India.
Likewise Suzuki Swift 1.3 Deluxe is being sold at a price of Rs1375000 in Pakistan where the same car is being sold at a price of Rs900,000 in neighbouring country, India.
The prices of Toyota Corolla Altis, Honda City and Honda Civic are less than India, Malaysia, and Indonesia. He further said that some of the car companies were not delivering some variants of cars within the prescribed period of two months. Due to late delivery car were sold at a higher price- known as own.
He however clarified that the car assemblers of the country referred as -OEMs -do not benefit from the black money but it is the investor who makes an extra profit, because customers are not willing to wait for their turn for the vehicle of their choice with the desired specifications.
The minister said as per Automotive Development Policy (2016-21), price and delivery schedule, must not exceed two months.
Under regulations any delay over two months results in a discount @ Kibor+2 percent prevailing on the date of final delivery/settlement from the final payment.
He said it is a measure to discourage any delay in the delivery time beyond sixty days.
He further said that as per auto policy the auto assemblers are required to reimburse Kibor+2% to the customers on late deliveries beyond 60 days.
The minister said his office has been engaging all the relevant stakeholders including manufacturers/OEMs, FBR, dealers, banks/SBP and end users to address the issue on the ground with federal-provincial coordination and cooperation from sale/purchase to registration of the vehicle.
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