KARACHI, Sept 15: Car manufacturers have been asked to furnish details like booking of cars in hand, deposit of public money, pending orders, reasons for charging premium, etc. , so that these could be discussed in a meeting with Industries and Production Minister Jehangir Tareen on Friday (September 17).

Assemblers have received letters two days back from the ministry concerned to come up with details as to how many cars booked earlier have been pending for delivery to customers. Besides, they have been asked to provide details of new booking of cars in hand and their delivery schedule.

An auto industry source said the ministry had asked about the steps taken by the assemblers and what strategies were being chalked out to meet the phenomenal demand for cars in the shortest possible time. They have also been asked to give reasons for charging premium on new models for a long time.

The new minister will ask the assemblers about their future investments and expansion plans. The assemblers will also be asked to give details about their previous investments.

The assemblers are expected to elaborate upon the current size of car market and its future prospects. Market sources said the assemblers were well acquainted with such type of queries from the industries ministry as they had received the same when Liaquat Ali Khan Jatoi was industries minister.

However, these stereotype exercises on the part of the government have so far failed to resolve the pressing issues of late delivery of cars and high premiums. An assembler, on condition of anonymity, said the assemblers had been urging the government not to allow transfer of cars for six months. It was also proposed that the registration book should be issued to the person on whom the car has been booked.

He said these two decisions could arrest the menace of premiums and late delivery, but the government had not given any attention on them. Liaquat Jatoi had asked the provincial excise and taxation departments to restrict the transfer of cars for six months, but the provincial governments had argued that it was a provincial issue and by doing so their earnings from transfer fee would decline.

The assembler added that still 30-40 per cent investors were very much active in the market, thus flaring up demand for cars and widening gap between demand and supply.

An average 70 per cent increase in production of cars every month has so far failed to shorten the delivery timing of vehicles. The market is waiting to see how the minister handles the issue of premium and late delivery in view of his statement made at a press conference on Saturday that premium on new cars was unacceptable.