September 3, 2003	Wednesday	Rajab 5, 1424

KARACHI, Sept 2: The issue of premium on newly assembled cars, being charged by the authorized dealers, has again surfaced due to rising demand which the assemblers could not meet despite raising car production in recent months.

The local industry as well as the industries ministry have virtually failed to control the menace of black marketing of new models despite assemblers’ tall claims of rolling out new cars at a much faster pace.

The rate of premium had dropped in April owing to Federal Minister for Industries and Production Liaquat Ali Jatoi’s statement that assemblers had agreed to cut prices from May.

On the other hand, authorized dealers are dilly-dallying with the prospective buyers in giving the actual time of car delivery, being booked currently.

A random market survey reveals that the “on rate or premium” on Suzuki Alto 1000cc now ranges between Rs30,000-35,000 as compared to Rs20,000. The premium on Mehran A/C is now being quoted at Rs25,000-27,000 as compared to Rs22,000. Premium on Cultus hovers between Rs40,000-45,000 as compared to Rs32,000, while on its fully loaded version it is being quoted at Rs65,000 against Rs40,000. The on rate for Baleno is Rs80,000 as against Rs65,000.

Pak Suzuki Motor Company from August 29 has suspended booking of new models as the company is enhancing production in order to respond positively to the request for the earlier delivery from the ever increasing number of customers.

The company, however, did not give the actual date of resuming the booking. It had also not given any details about the actual percentage of increasing the production. “There is a backlog of old orders. Delivery is being delayed and there is a pressure. That is why the decision has been taken,” an official in Pak Suzuki said.

The premium on new model of Honda City, which was launched last month, now ranges between Rs150,000-200,000 despite the fact that the new car is yet to hit the market.

Authorized dealers of Honda are presenting a different story on the actual delivery timing of cars. A dealer in Site area said that the new City would be delivered within three months, while a dealer at Shahra-e-Faisal said that the car would be delivered in a minimum period of 10 months. “The delivery period may go beyond one year. The car is being booked at full payment and the company, after receiving the booking form, will inform the buyer in about a month about the actual delivery timing”, he added.

The actual delivery timing of Honda Civic ranges between three to six months depending on the model. The premium on Honda Civic hovers between Rs100,000-110,000 as compared to Rs80,000.

The premium being charged on Toyota Corolla is Rs130,000-140,000 as compared to Rs100,000-120,000. The car is being delivered to the customers in the fourth month from the date of booking.

“Virtually no locally assembled car is available on its actual company rate these days despite raise in car production,” chairman All Pakistan Motor Dealers Association (APMDA), H.M. Shahzad said, adding the delay in delivery is causing a stir in the car market.

He said Liaquat Ali Khan Jatoi had been urging the assemblers to deliver cars in two months.

Auto analysts said that actually the demand had outstripped supplies and heavy investors’ presence could be blamed in pushing up the car demand.

Besides investors interest in car segment — car demand has also picked up on buying by multinational companies, corporate houses and rich persons owing to attractive packages being offered by leasing companies and banks on car financing. Car sales in the first half of the current fiscal year may end up on a promising note in view of the ongoing rising pace of the booking.