An inter-ministerial panel headed by Minister for Water and Power Khawaja Asif has recommended strict measures to rationalize advance payment on new cars, quality and safety regulations which will lead to a reduction in profit of car assemblers, well informed sources in Engineering Development Board (EDB) told Business Recorder.
The committee has finalised a five-year draft Automotive Development Policy (2014-19), which has already been carried by this newspaper, and which will be considered by the Economic Co-ordination Committee (ECC) of the Cabinet. "There is no institutional mechanism to address consumer welfare and feedback as vehicles' assemblers do not take note of any complaint made by a consumer about quality, safety and frequent escalation in car prices," the sources added.
To address various issues, the committee has recommended the following measures: (i) the amount of advance payment shall be limited to 75 per cent of the total price. The price shall be firm at the time of booking while interest on the advance payment for the period from payment to delivery shall also be discounted from the final payment. This will shorten delivery lead time; (ii) enforcement of safety regulations by the Ministry of Communication as outlined in the ADP; (iii) compulsory installation of immobilizers in cars by OEMs; and (iv) product recall system shall be put in place in line with global practice.
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