The country's powerful auto sector is reportedly reluctant to implement consumers' welfare measures announced in the Auto Policy 2015-21 with reported support from the Engineering Development Board (EDB) but is enjoying financial benefits effective from July 1, 2016, well informed sources told Business Recorder.
Finance Minister, Senator Ishaq Dar and Chairman Board of Investment (BoI), Dr Miftah Ismail had secretly finalised the auto policy by sidelining Chairman Privatisation Commission Muhammad Zubair who was the key negotiator of policy measures with the auto sector. The EDB was not considered trustworthy at that time of finalisation of the policy which was confirmed by one of the top officials of the Board.
In the auto policy it was decided that amount of advance will be limited to 50 percent of the total price and delivery schedule, not exceeding two months, will be firmed at the time of booking. Any delay over two months will result in discount @ Kibor plus 2 percent prevailing on the date of final delivery/ settlement from the final payment which will help shorten delivery lead time. It was also decided that safety regulations will be developed and enforced, installation of immobilizers will be compulsory by the OEMs and product recall system will be put in place in line with global practice.
"There is not substantial progress in implementation of auto policy so far. Car assemblers have neither installed immobilizers in cars due on July 1, 2016 nor are consumer related issues at the registration level being addressed," the sources added.
On July 12, 20116, Ministry of Industries and Production also held a meeting with the three top car assemblers ie M/s Suzuki, M/s Indus Motors, assemblers of Toyota and Honda Atlas and were asked the reasons for not installing immobilizers' as per the notified policy.
According to sources, M/s Honda sought six months to one year to install immobilizers' whereas M/s Toyota argued that the company be allowed to install immobilizers' on the new models. M/s Suzuki, sources said, outrightly refused to install immobilizers' in present models requesting that they should be allowed to install it in new models to be launched in the future.
The sources said, Ministry of Industries and Production showed leniency towards the car assemblers with respect to implementing the policy in letter and spirit and directed the representatives of car assemblers to submit the detailed plan to the Ministry of Industries and Production and sought technical justification for not installing immobilizers.
"Ministry of Industries and Production and EDB have exhibited connivance with the auto sector in not implementing the auto policy," the sources continued. On July 18, 2016 another meeting was held in the Ministry to discuss a petition of Ms Farhanaz who pleaded that two of her nephews died in an accident due to non installation of airbags in the car of a local company. LHC, in its order had directed Secretary Industries and Production, to inquire from the companies as to when airbags would be installed. National Assembly's Standing Committee on Industries and Production headed by Asad Umar is expected to discuss steps taken by the Ministry for implementation of auto policy.