Proton Pakistan yet to refund Rs600 million after delivery delays, prompting govt intervention

Proton Pakistan, which markets Malaysian brand Proton through the Al-Haj Group, has refunded Rs300 million to customers after failing to deliver vehicles against bookings, but nearly Rs600 million remains outstanding, The Express Tribune reported. 

The company had collected approximately Rs890 million from customers for vehicle bookings. However, it was unable to supply the cars and initially did not return the payments.

Following complaints, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan and the newly appointed chief executive officer of the Engineering Development Board intervened, urging the company to either deliver the vehicles or refund the amounts received.

Tribune cited sources as saying that the automaker has so far returned Rs300 million and has assured authorities that the remaining amount will also be repaid. 

The Ministry of Industries has reportedly received complaints against other car manufacturers as well, alleging delayed deliveries despite full or partial payments. Officials said the government is considering strict action against companies that fail to hand over vehicles or refund customers.

Under the auto policy, manufacturers and assemblers are required to pay interest to customers if deliveries are delayed beyond six months. Sources indicated that in some cases, customers have been waiting for years without receiving either vehicles or refunds.

The Engineering Development Board, which regulates the auto sector and oversees consumer protection, has begun reviewing pending cases. The government had introduced incentives for new entrants under its auto policy to increase competition in a market dominated by established Japanese brands.