CCP to hold open hearing on automobile sector competition issues

Competition Commission of Pakistan (CCP) is organising an open hearing on competition issues and consumers’ queries regarding local automobile industry in Jinnah Avenue, Islamabad on 12 April 2018. The open hearing will start at sharp 11:00 am.

Also Read: CCP Imposed Rs. 140 Million Fine On PAMADA For Price Fixing And Cartelisation

The authority has received many complaints from consumers concerning the constantly changing prices of cars, premiums, lack of features in cars, poor quality vehicles and prolonged delivery times which are indeed huge problems that need to be addressed. And that is why CCP in this regard has invited all the stakeholders to share their point of view. It is to be noted here that local manufacturers have surged the prices of their vehicles for two consecutive times this year. Furthermore, consumers have long cried for the lack of features in locally produced cars and their poor build quality. Premium and delivery timings of the vehicle also reached an all-time high at the beginning of this year. So, it is a good step by Competition Commission of Pakistan to hold such as event.

ccp automobile sector competition issues

The local companies are required to deliver the car with best features and within two months delivery time according to the auto policy; however, no manufacturer is following the policy in true letter and spirit.

Moreover, other than consumers queries in the open hearing other automotive related issues and queries such as status of implementation of auto policy (2016-21), used car import policy and its impact on the local market, duties on auto parts, tax structure and exchange rate impact on car prices etc would also be discussed in detail.

Consumers are encouraged to take part in this event, but registration before the actual date of hearing is a must. Moreover, all those who are willing to participate in the event or want to share a material regarding any issue should contact the authorities by 10 April 2018.

Stay tuned to for automotive related news and happenings.

ccp automobile sector competition issues pw

My name is M. Ali Laghari and I love to read and write about Cars.

Notable Replies

  1. Sir, well done! I appreciate your efforts in this regard. You are contributing selflessly to a noble cause. :+1:

  2. Both consumers and manufacturers put their points of views before the commission and based on the hearing and comments recieved via mail, the CCP will give its ruling.

    I was the first to get the floor and made the following submissions.

    Competition issues Pakistan Automobile sector

    Public Hearing, April 12, 2018, Islamabad, Pakistan

    Long waiting period, black marketing, hoarding (up to seven months wait)

    There is six to seven month wait on the new cars, but cars are available on up to 300,000 rupees extra right on the spot. It shows that cars are being hoarded and people known as “investors” book cars not for personal use but just to earn premium.

    No effective regulatory measures exist to check this practice like making it compulsory to register the car in the name of person invoiced.

    Forced selling of prepaid maintenance, extended warranty, insurance, registration

    I brought the issue into the notice of CCP in August 2017 and also complained to Indus Motor Company that dealers are forcing the customers to buy prepaid maintenance, extended warranty, insurance, registration.

    The IMC did display a banner on their website that prepaid maintenance and extended warranty were optional, but dealers continued to denied the bookings and many people reported that on, Pakistan's largest car blog as well.

    Quality issues (poor materials, outdated infotainment and cameras, noises, squeaks, fading)

    The build quality of local assembled cars is not yet up to the mark and the workman ship is so poor that there seems to be no quality control. Outdated equipment like infotainment systems and poor quality drive assists cameras complaints are already flooding Internet.

    Safety features (no uniform minimum safety standards, only all Corolla variants have dual airbags, but still Xli does not have ABS. Traction control should be made compulsory for all cars, no airbags in Honda City, Suzuki Mehran, Bolan, Ravi, Swift)

    There seems to be no national organization in place to assure minimum vehicle safety equipment in the locally assembled or imported cars which gives a free hand to local assemblers as well as importers to provide safety features at their sweet will. There are no crash safety ratings system in the country. The government may be suggested to create such a body to ensure that people do not die or become disable in case of a crash.

    Obsolete models (Honda City, Suzuki Mehran, Bolan, Ravi)

    Local car assemblers are still selling 1980s cars in the country that too at exorbitant prices. Govt should make assemblers bound to phase out obsolete cars in a certain time frame like maximum 10 years.

    Overpriced after sale service and spares.

    3S dealers networks are selling spares at very high cost and charge 200 percent to 300 percent more prices than the open market. A sort of monopoly is created by bounding consumers to buy spares only from 3S workshops at very high prices, otherwise warranty of vehicle is voided.
    It is correct that to ensure the authentic and original parts workshops have imposed this restriction, but then parts should be reasonably priced. Currently an Oil filter costs 1450 rupees at 3S workshop while same is available for 650 rupees in open market. Airfilter price at 3S dealers is 3,130 rupees while in open market it sold for 1,250 rupees. 3S workshops charge 4,250 rupees cabin filter 4250 same is available in open market for1200 rupees.

  3. After the hearing had a brief conversation with Mr Jamali, CEO of IMC and told him about infotainment issues in Grande. He listened to me keenly and said please tell us we will replace your unit and I said Jamali sb replacement is not the issue but IMC has selected an outdated equipment with just 1 GB RAM and android 4.2.2 which is already obsolete and have insufficient resources.

  4. aa78 says:

    According to the Auto Policy 2016 document, prices at time of booking are firm prices and cannot be altered. Any price increase clause on the PBO should not matter squat if it conflicts with the policy framework given by Government of Pakistan. Did anyone raise this point?

    Thank you, @autophile. Maximum pertinent points raised.

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  • Guest

    Good step