August 7, 2002	Wednesday	Jamadi-ul-Awwal 27,1423

KARACHI, Aug 6: Commerce Minister, Abdul Razak Dawood will hold an important meeting with car assemblers on August 8 in Karachi to review the industry’s proposals regarding solutions to car buyers problems.

The minister will review the assembly line and delivery of cars to the consumers besides discussing affordable price structure and premium being charged by the dealers on new cars.

Dawood in a meeting on May 26 in Karachi had given a deadline of 10 days to the local assemblers to come up with suggestions to ensure consumers’ interest.

It was made clear to the local industry people that the government is taking a serious view of the situation and they were asked to come up with suggestions providing solutions to the problems.

Sources in auto sector said that the minister is likely to build up pressure on the car assemblers to bring prices at affordable levels and take administrative actions against their authorized dealers, who are involved in charging premiums on new models.

They said that each assembler is expected to come up with separate proposals regarding price cuts and increase in production as every manufacturing unit has its own problems. They will come with proposals under one platform of Pakistan Automotive Manufacturers Association (PAMA).

Assemblers will also inform the minister about the prices of cars in dollar terms in Pakistan and in other neighbouring countries.

Car manufacturers had already geared up their production since February and March this year following a sudden demand spurt due to change of models particularly in Toyota Corolla and Suzuki Baleno followed by advent of investors and speculators in the market, that resulted in boosting demand and heavy booking of cars.

A leading assembler said not only the investors who have caused a stir in car market but some customers are also in a hurry to make a a fast buck as they sell the newly purchased car to another customer in profit and again book the car.

Market sources said that various companies have started taking action against their authorized dealers involved in charging premium.

For example, Indus Motors, makers of Toyota Corolla, has suspended the dealership of its two authorized dealers in upcountry.

Assemblers had assured the government in March that the situation would improve in three to four months but according to All Karachi Motor Dealers Association (AKMDA), there is virtually no change.

“There is no local assembled car purchasable without paying premium. Besides, no deliveries are being made on time,” says AKMDA in a letter to president Gen Pervaiz Musharraf.