Car prices and delivery periods

27 Jan, 2005

This is in reply to the letter of Hisamuddin Rustom (January 17). The so-called 'premium' being charged by the authorised dealers of the renowned automobile assemblers is nothing but a 'black marketing' tool. No authorized dealer worth his name can indulge in 'black marketing' of his principal's products without the former's knowledge, consent or tacit approval. That is simply impossible and Hisamuddin must be aware of it as he claims to be an industry analyst.
May I ask him how many dealerships automakers have been terminated over the past 2 years for indulging in 'black marketing' of their brands?
It is probably for the first time in the history of the auto industry in Pakistan that the automakers are charging full price of cars in advance and keeping it in their banks to earn huge interest/mark-up. On the one hand, the automakers earn millions in interest/mark-up from advance payments and, on the other, they charge from the buyer the enhanced price prevailing at the time of delivery of the vehicle. Where on earth is such a practice followed, except in Pakistan?
The automakers are shrewd enough to release 'public service' advertisements every time the federal government or the public raises the issue of high prices, premium and late deliveries. Whose money is spent on these costly advertisements?
Last but not the least, how do the automakers of 1300cc cars supply hundreds of cars to the federal and provincial government despite their production constraints? Were those cars booked in advance?

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