KARACHI, Nov 22: Confusion over allowing car imports in the last four months followed by the task force’s proposal last month to the government for reducing import duty on new cars by 35-50 per cent on various models have failed to divert the attention of buyers from booking of locally-assembled cars.

Some impact in shape of thin booking by prospective buyers was seen in August-September on various models on the government’s decision of setting up a task force to review issues like rising prices, premium and late delivery of cars, but the July-October production and sales figures revealed that it had not made any marked impact on the buying sentiments of new consumers.

Initially, the consumers were double-minded whether to book locally-made cars or wait for the arrival of imported cars. But with the passage of time, the consumers again started booking locally-assembled cars after watching the government’s lukewarm response to the Task Force’s recommendations.

Car production and sales in October jumped by 73 and 71 per cent, respectively, followed by 61.5 and 66 per cent surge during July-October 2003, as compared to the corresponding period of 2002.

Despite presence of premium rates on new cars coupled with late delivery problems, production and sales of cars in October 2003 surged to 7,730 and 7,918 units, respectively, as compared to 4,672 and 4,626 units in October 2002. Similarly, total production and sales in July-October 2003 reached to 28,138 and 28,862 units from 17,417 and 17,351 units.

As car makers have been jacking up production to meet various targets like outstripping demand, cut in premium rates through continuous flow of production as well as to eliminate the menace of premium — the government is yet to act on the task force’s recommendation on duty cut on new cars.

No official word has come so far whether the government is really serious in allowing import of new cars or it is giving more time to the industry to overcome problems of late deliveries and premium issues.

Market sources said the government, on mounting pressure from the assemblers, was considering giving more time to the industry to handle the situation. The sources said the government would watch the impact of rising production till December this year whether the industry’s efforts were helping out the consumers in getting early delivery of cars, besides eliminating the premiums being charged by the dealers.

Car analysts said it would really be a hard decision for the government to allow imports of cars at a time when the industry was riding on top gear. Some analysts said this was right time to allow car imports in order give an exposure to the local industry to meet challenges of the WTO when markets would be opened. An analyst said that any decision of allowing car imports would hit the industry severely, causing massive unemployment in the vendor industry as well as suspension of future expansion and investment plans of the local industry.

According to figures compiled by the Pakistan Automotive Manufacturers Association, Suzuki Mehran production and sales rose to 7882 and 8,264 units, respectively, in July-October 2003, as compared to 4,402 and 4,475 units in the same period of 2002.

Toyota Corolla production and sales increased to 7,314 and 7,173 units from 3,514 and 3,444 units. Suzuki Alto 1000cc production and sales in the last four months stood at 1,877 and 1,989 units, as compared to 1,376 and 1,326 units in July-October 2002. Cultus production and sales enhanced to 3,589 and 3,823 units from 2,352 and 2,263 units.

Buyers’ shifting attitude towards Suzuki Baleno had boosted its production and sales to 1,389 and 1,457 units, respectively, from 779 and 773 units in July-October 2002.

Change of model in Honda City in September flared up demand, pushing up its production and sales to 1,645 and 1,542 units in July-October as compared to 1,320 and 1,276 units in the same period of last year.

Honda Civic’s production and sales plunged by six and four per cent to 1,768 and 1,771 units, respectively, from 1,874 and 1,846 units in July-October 2002.

Dewan’s Santro Plus production and sales stood at 1,156 and 1,414 units as compared to nil production and only 21 units in July-October 2002. The company had not rolled out any unit during July-October 2002.

Daihatsu Cuore’s production and sales also declined to 1,416 and 1,322 units, respectively, from 1,577 and 1,572 units in July-October 2002.