KARACHI: All Pakistan Motor Dealers Association (APMDA) Chairman H M Shahzad on Saturday demanded from the Competition Commission of Pakistan (CCP) to direct the banks and the car manufacturers in Pakistan to submit the details of all bookings of vehicles as it is the primary reason for the late delivery of the vehicles.
In a letter sent to the CCP, he said, “Manufacturers accept bookings in large numbers from banks without confirming actual customers with a preferential treatment (premium) for early delivery of vehicles. An authorized dealer is chosen to book the vehicles with the connivance of bank executives and sales representative of the manufacturers.”
He further claimed that premium is indirectly charged in the guise of heavy markup by 5 per cent more than then average charges or disposing off against full invoiced value through an official instrument plus cash payments of the premium not recorded in the bank’s records.
He further asked the CCP that if the above is found correct, such bookings should immediately be cancelled. An inquiry should also be initiated as to why this continues to happen when there is a huge cry on late deliveries.
The chairman said the problems has been compounded by the banks through bookings in large number and disposing off these bookings through authorized and nominated dealers or through auto loans on high Mark-up.
The above results in delays to an intending customer but is a win-win situation for the manufacturers, dealers, banks, bank officers and representatives of the manufacturers, he said while questioning that is this practice allowed under the law of Pakistan?
He further added that genuine customers are left with no choice but to either wait months or buy on premium to be shared by many individuals under the table. A strict note should be taken to this practice, while the role of the bank is presumed to be of an investor.
The CCP had earlier recorded statements of the manufacturers and the concerned authorities and reserved the judgement on April 12.
