Some points from my notes:
Mr Ali Asghar Jamali, CEO, IMC and Chairman PAMA
- CBU can be imported by anyone , there is no restriction my government
- We have no protection, 80,000 cars were imported in the country, while Honda produces 53,000, IMC 60,000 and Suzuki 150,000 vehicles
- 30% of car price government taxes
- Premiums are there in the market, I would not defend. We are increasing production, we have checked and cancelled orders (by potential invesotrs).
- Indus is not force selling pre-paid maintenance, extended warranty, but encourages dealers to register cars.
- We are paying more than a billion rupees to customers in the past 18 months for giving deliveries beyond 60 days at KIBOR + 2% rate. Investors are misusing partial payment scheme by booking multiple cars under different CNICs.
- Pay order should not be issued from someone else account. We are asking the govt for the last four years to disallow it.
- There is 64% localisation. Deletion was done away years ago. Now there is separate duty structure for the parts that cannot be produced locally.
Auto vendors association rep said:
- Quality issues are exaggerated. All parts are sent to Japan for approval and five units of newly launched cars are sent to Japan for testing and approval and after that cars are brought into market.
- 1982 deletion programme started, but when WTO came it was ended in 2005
- In 1990 New Zealand was making 200,000 to 30,000 Toyotas then then they started importing certified used cars and now their plant is shut.
-Suzuki is bringing a Glass manufacturing plant from Malaysia next year.
-Alloy rims plant is being brought from Melbourne by Suzuki, while IMC is bringing a plant from Toyota Adelaide.
- Mehran being discontinued next year, but replacement of it would be costlier by 300,000 rs to 350,000 rupees.
FBR Representative:
- There is no regulatory duty on cars up to 1800 cc. 70 percent or imports are up to 1000 cc.
- Import of new cars is open in Pakistan
- Current auto policy does not cover import of vintage cars.
Ministry of Commerce Rep said: For classic and vintage cars imports stakeholders can submit their proposals, suggestions to Ministry of Commerce as new trade policy is coming and ministry of commerce has also published ads for seeking public suggestions.
Representative of ETO Islamabad: We want to facilitate consumers and "ON" system should be eliminated. There should be a ban on transfer for perdiod to check the problem.
Asim Ayaz of Engineering Development Board:
About quality issues he said: "We don't have any regulations to tell Suzuki, Toyota, Honda to make cars according to this standard."
- United Motors are bringing their 800 cc car
- DFSK are bringing CKD
- Kia and Hyundai are starting production in 2 years
- Foton JW
- Master Changan all are also starting production or have done it.
- We are waiting for Renault and (one more)
- Datsun approved, Nissan comking
Consumers points
- There should be fair calculation of prices of car
- Only filers should be allowed to buy cars or be ahead in the queue at least
- Old booking prices should not be increased
- CCP should check profit margins
- Importer or used cars said that commercial imports of used cars up to five years should be allowed. It will end own problem and people with get better cars are lower prices.
My submissions : I posted them in the other thread, but submitting for respected fellow Pakwheelers here.
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 Pakwheels.com, 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. Air filter 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 for 1200 rupees.
