ISLAMABAD: Car manufacturers have urged the government to take administrative and legal action against car dealers for “charging anything over and above the invoiced amount of booked vehicles”.
According to sources, a two-member committee, comprising the law minister and the adviser to the prime minister on commerce, has given a clean chit to a cartel of local car manufacturers allegedly involved in receiving illegal premiums on delivery of vehicles.
“The federal cabinet had earlier directed the committee to develop a regulatory framework to check this illegal practice. Following the orders, the committee members held meetings with all the concerned stakeholders and car manufacturers operating in Pakistan – Pak Suzuki Motor Co Ltd, Indus Motor Company Ltd and Honda Atlas Cars (Pakistan) Ltd – to understand the gravity of the issue.
“The manufacturers informed the members that the practice of ‘illegal charging of car premiums’ by car dealers was not correct as presumed in the market, and that they have all the record, including monthly bookings and delivery statuses, available with them as proof,” sources privy to this development informed.
In addition, the manufactures claimed that if they deliver a car after the two-month period, then they pay late delivery charges at KIBOR +2pc to the customers, sources said.
The manufacturers maintained that they were not charging any premium on car delivery, adding that all necessary administrative and legal action should be taken against car dealers who are found to be involved in charging extra money for booked vehicles.
In recent months, the demand for local vehicles has dropped significantly due to an increase in prices by car manufacturers, who cite the fall of PKR currency against USD as the main reason. The manufacturers had also cut their productions, as the consumers were not ready to buy new cars following the recent surge in inflation.
Sources said the report submitted by the committee to Prime Minister Imran Khan shows ‘all is well’ on part of local car manufacturers, who had resolved to help the government take action against car dealers involved in dubious activities.
