With the import of over 61,000 used vehicles, there has been a decline on premium charged against the sale of locally made cars. According to sources, with the government decision allowing import of cars, there had also been a decrease in delivery period of locally-made new cars.
Locally made vehicles, which was earlier delivered after a year, was now being given within 6-8 months. The decision of the government making production of NTN number compulsory for booking of vehicles had also checked activities of so-called investors, who used to invest huge amounts on booking of vehicles to fetch profits through premium, sources added.
They further said the Central Board of Revenue (CBR) had also taken steps to document motor vehicle dealers and bring them into the tax net. This step had checked the premium on new cars, they added.
According to official sources, around 61,479 used vehicles have so far been imported since the government allowed import of used vehicles. The government had allowed import of used cars in the budget for the financial year 2004-2005 in view of ever-increasing demand of vehicles.
Motor vehicle dealers told Business Recorder locally made used cars, which were earlier available at Rs450,000 could now easily be bought in the range of Rs350,000 to Rs385,000. The import of locally manufactured new cars also made a difference in the resale value of these vehicles.
Reacting to ban imposed by the government on the import of more than five-year-old vehicles, experts said it would increase the premium on new cars. They said the government must encourage import of used cars so that monopoly of local car manufacturers could be put to an end.
They also asked the government to ensure availability of spare parts of imported used cars so that public may not suffer.