There was hardly any increase in the production of cars during 2006-07 against the same period of previous year despite the fact that the government had accepted all demands of auto assemblers, including ban on import of five-year-old vehicles, in the long-term auto policy, designed to increase production.
Total production of cars was only 160,496 in 2006-07, 438 vehicles more than previous year's 160,058, which showed almost no growth. The government had given clear roadmap to the industry by unveiling five years' pre-announced tariff in its new auto policy so that the assemblers could raise their investment and enhance production capacities to meet the demand-supply gap.
But the production figures for 2006-07 paint an altogether different picture. The local assemblers have not only increased the prices of vehicles after the government, conceding the longstanding demand of assemblers, imposed ban on import of five-year-old cars in the budget 2006-07 which resulted in an increase in the premium known as 'own money', charged for delivery, which had almost finished after import of used cars was allowed.
The data showed that production and sale of Honda Atlas and Dewan Farooque declined during 2006-07 while those of Pak Suzuki and Indus Motors increased. The production and sale of Honda Civic and Honda City amounted to 5,610 and 6,513 vehicles, respectively, during 2006-07 over past year's 12,274 and 11,998 cars. The sale, production figures of Toyota Corolla for the period under review were, 35,762 and 35,036 respectively against previous year's 31,094 and 30,527 cars.
There has been substantial growth in the sale and production of almost all vehicles assembled by Pak Suzuki Motors. Among 1000cc the production of Suzuki Khyber/Cultus was around 29,880 vehicles against previous year's 21,342; Suzuki Alto 21,546 vehicles against 21,390, and 800cc Suzuki Mehran was 12,776 vehicles against 77883. An official in Engineering Development Board (EDB) said that production of vehicles during 2006-07 was not up to government expectations, but about increase in premium he referred to other sectors citing land and food as example. "Is food, the most essential commodity for human survival, free from black marketing?" he posed the question when asked why measures were not taken to discourage the heinous practice of premium on cars. He, however, admitted that the premium, known as 'own money' had gone up since the ban on import of five-year old cars, but said that the local industry could not be jeopardised to benefit the Japanese companies, expressing hope that local assemblers would realise and take measures to eliminate this abhorrent practice.
The 'own' on Cuore has gone up from Rs 5000 to Rs 8000; on Toyota Corolla to Rs 45,000 from Rs 8000-10,000; and on Corolla GLI from Rs 10,000 to Rs 50,000. Amongst Suzuki brands, the most used vehicles are Mehran, Cultus, Alto, Liana, Bolan Van and Ravi Pickup.
Suzuki Cultus VXR 'own money' is Rs 25000, Cultus VXR CNG is around Rs 25,000. Suzuki Ravi pickup 'own money' is Rs 60,000 which is quite a high amount to be paid as own money. Similarly, Suzuki Bolan van own money is Rs 60,000. Previously there was no own money on Honda vehicles but now it is around Rs 10,000 to Rs 12,000.
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