Delivery delays have become a common trait among automakers and a matter ofgreat bother for car buyers all across Pakistan. The Government has finallycaught wind of the issue and, as a part of the new auto policy, has decidedto slap penalties on automakers who fail to deliver cars to the customerswithin two months of booking.
The said development was revealed yesterday by the additional secretary,Ministry of Industries and Production, as he was briefing the NationalAssembly Standing Committee on Industries and Production during a meetingthat was chaired by Sajjad Hussain Turi. As per the report, the decisionshall be made applicable from July 2021, following the upcoming budget.
The Engineering Development Board (EDB) also added during the meeting thatthe car companies that delay the delivery of vehicles beyond two monthswill have to pay a fine of 3 percent plus Kibor.——————————
The fine percentage shall be that of what the customer has paid to thecompany for the vehicle, however, it wasn’t revealed if the percentage isthat of the full vehicle value or just the booking amount.
The said step is reportedly intended to curb the “own-money” problem thatpersists in the Pakistani car market. The delivery delays are believed tobe a means of exploitation for the auto dealers ad investors who charge apremium from the customers over the car’s original Manufacturer’s SuggestedRetail Price (MSRP) for early delivery of the vehicle.
The committee members pointed out that currently, “own-money” is beingcharged between a range of Rs. 400,000 and Rs. 1 million. In case ofpurchase without paying the “own-money”, the customers have to sometimeswait well beyond the committed delivery times.——————————
One of the names that were brought up by the participants of the meetingwas Morris Garages (MG). The committee members pointed out that, as oflate, the automaker has made it a habit to deliver the vehicles late to thecustomers.
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They also discussed that the company is selling said vehicles in the marketwithout ensuring the upkeep of spare-part stock to cater to the marketneeds, which is causing customers a great deal of distress.
It bears mentioning, though, that despite the aforementioned issues, MG’spopularity continues to stay strong, and with the recent development of amanufacturing plant in Lahore, the automaker is seemingly set to overcomethe issue of delivery delays.——————————
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The said step is indeed a promising one from the government. The deliverydelays and the menace of “own-money” have been the reasons for a toxicenvironment in the car market for a long time. The strict enforcement ofthe aforementioned clause is likely to finally solve the said problem.
Via: Business Recorderlink
