KARACHI, May 26: Expectation of a possible cut in prices of automobiles from next month has drastically brought down booking orders.

Authorized dealers of Toyota, Honda and Suzuki said on Monday that booking of new cars has dropped by at least 40-50 per cent as buyers have adopted wait-and-see attitude in booking of new cars.

Booking of automobile proved a bonanza for the investor for last about one year after leasing companies and banks started offering liberal financial assistance and car business offered a lucrative return.

But automobile dealers said the slowdown in booking was quite strange on the part of consumers as the assemblers had always refunded the difference whenever the prices were cut.

A leading Japanese car assembler also told Dawn that the booking of new cars had also plunged. “I cannot give the exact percentage but there is definitely a slowdown,” he added.

The statements of Federal Minister for Industries and Production Liaquat Ali Khan Jatoi for the last four months over possible price cut followed by a firm statement on April 30 that assemblers had agreed to cut prices on June 1 has caused a major shake up in the market, thus resulting in cut of higher premiums on new models.

Suzuki Cultus CNG, on which Rs50,000 was being charged as premium as against its actual price of Rs590,000, has reduced by Rs20,000. Currently it is being sold out at Rs610,000.

CNG Mehran is being sold at Rs354,000 as against its control price of Rs324,000. Currently, its rate in black-market has fallen to Rs331,000. Alto 1000cc was selling at premium price of Rs530,000 as against its company price of Rs496,000. Now it is being sold at Rs510,000.

The premium on Toyota Corolla was being charged at Rs100,000- 150,000 when it took the market by storm last year. After various statements by the federal industries minister over price cut in the last four months, the rate of premium dropped to Rs70,000-90,000. Currently, the premium on Corolla ranges between Rs50,000-60,000. Same is the case of Honda VTI models.

A dealer said that investors were now selling the cars at reduced rates in the market in anticipation that the assemblers may cut prices from the next month.

He said that consumers were desperately waiting for any final decision on prices and they were expecting three to 10 per cent cut in car prices. The recent cut in price of bikes by Rs3,000-10,000 has enlivened the hopes in the auto market that car assemblers may announce bigger cuts.

As only five days are left to June, authorized dealers said they had not received any intimation from their assemblers about the price cut. “They are quiet these days,” a dealer said.

Local assemblers are not ready to offer any comments on the price cut on June 1. An assembler said that no decision had been taken yet so far, but he said that the issue was definitely under consideration. Sources said that the assemblers were considering only two to three per cent cut in prices.

Meanwhile, the car industry, comprising Toyota, Honda, Suzuki and Dewan, continued to enjoy boom in sales during July-April 2002-2003, rising the overall sales by 45 per cent to 48,415 units as compared to 33,293 units in the same period of 2001- 2002. Production surged by 51 per cent to 48,666 in July-April 2002-2003 as against 32,168 units in the corresponding period of previous fiscal, says figures of Pakistan Automotive Manufacturers Association (PAMA).