KARACHI, Aug 23: More than 50 per cent of cars were sold in 2001-2002 through leasing companies and car financing schemes introduced by the banks.

As many as 10-12 main players (including banks and leasing companies) are now actively engaged in auto financing and leasing business as compared to four to five main players some one and a half year back, chairman Leasing Association of Pakistan (LAP), Humayun Murad told Dawn on Friday.

He said that in the current financial year, many new banks and leasing companies are expected to enter the business since the buyers have started turning towards fully ensured car from authentic mode of financing.

Some two and a half years back, around 20-25 per cent of locally assembled cars were sold through leasing companies. In the last two years, many new companies have entered the market.

Meanwhile, a leading assembler said that around 60 per cent of cars are being sold through leasing and car financing and it is expected to go up to 70 per cent in the current fiscal year as banks and leasing companies are continuously improving the package for the customers.

By making obligatory to register car in the name of the person who booked it the government has tried to discourage investors in the car trading. Referring to steps taken by the government, LAP chairman said that this decision would definitely help in curtailing the premium issue besides discouraging speculators.

However, he said the leasing companies are reviewing the problems the genuine customers may face.

He also termed the decision of reducing the delivery time of cars to two months from three months in the interest of general public.

Humayun said investors and speculators had played havoc with the auto market which resulted in cropping up of the issue of premium on various cars.

Car sales in 2001-2002 stood at 42,341 units as compared to 38,047 units in 2000-2001 and 31,874 units in 1999-2000.