Sales of different variants of passenger cars, including all major brands, did not pick up and recorded lower sales compared to last year.
PHOTO: FILE
They cite “unimpressive” sales figures for passenger cars for 10 months (January-October) of the current year during which sales dropped 4% to 96,782 units compared to 100,692 units sold in the corresponding period of last year.
Sales of different variants of passenger cars, including all major brands, did not pick up and recorded lower sales compared to last year.
They lashed out at some car dealers, who in spite of the reduction in age limit for the import of used cars from five years to three years, continued to bring second-hand vehicles, albeit in smaller quantities.
In a statement on Friday, Pakistan Association of Automotive Parts and Accessories Manufacturers Chairman Usman Malik was of the view that the automotive industry and auto part manufacturers were still reeling from the aftershocks of inconsistent import policies, heavy import of used cars and amnesty schemes of the previous government.
He said sales of cars assembled in the country, including light commercial vehicles, vans and jeeps, fell 11% to 9,955 units in October compared to September, leading to a sharp decline in demand for auto parts.
This, he said, was primarily because of economic slowdown in the country and unchecked import of used cars.
Though the dealers claimed that import of used cars had plunged after the cut in the age limit, it was still damaging sales of locally-made cars as an average of 2,000 used cars were being imported every month, Malik claimed.
He listed major factors that were driving down demand for cars which included
persistent inflationary pressure, further fuelled by a higher general sales tax
that kept buyers at bay, depreciation of the rupee against the dollar and stiff competition with imported used vehicles.
He remarked that the present import policy continued to pose a threat to the domestic auto industry because, except for used cars, other vehicles such as vans, SUVs and 4x4 vehicles up to five years old could be imported.
Published in The Express Tribune, December 7th, 2013.
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@Zarb e Hanood: used cars are cheaper and better than the trash they sell
Its funny when the local manufacturers complain about loosing the market share, they seem not to do any Market analysis to find out what the end user really want from them.
If you take the example of Suzuki Bolan the shape is the same from Day 01 and the specs are slightly different the same goes with Toyota the colours are limited etc and if the CKD is expensive so we pay a higher price for inferior quality the sales team are not even bothered what they are offering it does not even have enough fuel to take you home once you pay a hefty price.
In the UK when you buy a new car they give you a full tank free door mats and free service coupons what do we give here nothing
FWIW car sales in India were also down for the month of October. Sales of Cars during the month of October totalled 163,199 units.