KARACHI, Feb 18: Car sector continued to show impressive performance with production and sales rising by 68 and 70 per cent during July-January 2003-2004 as compared to previous period of last fiscal but rising production had so far failed to eliminate the menace of premiums on new cars.

A total of 52,339 and 52,423 units were produced and sold in the last seven months of current fiscal as compared to 31,127 and 30,855 units in the same period of last financial year. However, this robust performance of the car makers had yet to address the issues of premiums and long waiting period of new cars.

Despite the fact that premium on cars has dropped on the government's approval last week to cut import duties on used cars and imported cars but it still haunts the buyers to pay some amount on spot buying.

Besides, car delivery timing still ranges between two to three months in Suzuki models and four to six months in Toyota and Honda models.

Figures compiled by Pakistan Automotive Manufacturers Association (PAMA) showed that Suzuki Mehran's production and sales touched to 14,980 and 15,168 units in July-January 2003- 2004 from 7,881 and 7,815 units, up by 90 and 94 per cent, in comparison to same period of last fiscal.

Suzuki Cultus production and sales rose to 5,882 and 6,076 units from 4,282 and 4,221, while Alto production and sales were remained higher at 3,659 and 3,724 units as compared to 2,415 and 2,369 units. Baleno production and sales recorded at 2,309 and 2,246 as against 1,329 and 1,305 units.

Honda Civic's production and sales jumped by 26 and 20 per cent to 3,213 and 3,232 units from 2,555 and 2,682 units while production and sales of City increased by 53 and 76 per cent to 3,793 and 3,741 units from 2,473 and 2,120 units.

Dewan's Hyundai Santro production and sales jumped by 200 and 195 per cent to 3,451 and 3,473 units from 1,155 and 1,176 units. Daihatsu Cuore production and sales swelled to 3,287 and 3,169 units from 2,630 and 2,551 units respectively.

The local assemblers are not ready to give an exact picture about the booking flow of new cars and on spot sales at showroom in the wake of government's approval to cut import duty on new and used cars. Production and sales figures of February will show the real impact of government's decision on consumers' sentiments towards booking of new cars and on spot purchase trend.

Car analysts were giving various views on the repercussions of the government's decisions. An analyst at Khadim Ali Shah Bukhari (KASB) Securities was of the view that no action would be taken for another three to four months in view of lethargy shown by the government on this matter.

The conditions, under which the import of used cars are to be allowed, are likely to be very stringent, given the government's support for the sector and the fact that three to four assemblers are foreign-owned companies.

The cut in import duty on CKD kits of small cars would help the assemblers maintain their margins whilst allowing them to reduce their prices and compete with the small completely built up (CBU) units, he said.