The import of reconditioned cars has slumped from 6,000 per month in 2005-06 to 1,300 per month during first quarter of the current fiscal, which again established the local assemblers' monopoly in the domestic market.
Talking to Business Recorder on Wednesday, All Pakistan Motor Dealers Association (Apmda) Chairman H.M. Shahzad urged the government to return to the pre-budget policy of reconditioned cars import otherwise local assemblers would eat up the consumers. A total of 3,961 vehicles of different engine powers were imported in the first quarter of the current fiscal year.
About 3,323 vehicles were imported from July to September 2007-08 in completely built condition (CBU) under personal baggage scheme, three under gift scheme, 132 under transfer of residence scheme, and 503 under other heads.
These included 2,000 vehicles of 1000cc, 407 vehicles between 1001 and 1300cc, 444 vehicles between 1300 and 1500cc, 7 vehicles between 1500 and 1500cc, 126 vehicles between 1600 and 1800cc, 377 vehicles between 1800 and 3000cc, and 27 of 3000cc apart from 571 jeeps.
The import of used cars would be lesser than last year and hardly seems to be going beyond 15,000 during 2007-08 against over 60,000 in 2005-06, and 35,000 in 2006-07. Shahzad said: "Reconditioned car importers implore withdrawal of restrictions on import of three years older cars as it would add more revenue and break up local assemblers' monopoly who have raised 'own money' on local cars as soon as restriction was imposed in the budget 2007-08."
Because of abrupt discontinuation in policy, black marketing was revived and consumers had to either wait six month for delivery of vehicles after making full payment or had to pay extra known as 'own money' for early delivery of vehicles, he added.
The Association chief said that reconditioned car importers had paid Rs 40 billion revenue to the government in 2005-06 which the local assembler did not pay in the last five years and most importantly the pre-budget policy had benefited the masses most who were fed up of paying additional money for a vehicle.
The government, to resolve the disturbing demand-supply issue, had given a clear five year roadmap to the industry to increase local production to 0.5 million in next five years, but the target may be impossible keeping in view the current production figures of local assemblers. The production of local vehicles is far less in 2006-07 than 210,000 vehicles envisaged by the Ministry of Industries Production.