LAHORE, Sept 17: Criticizing the government for what car makers term as an attempt at “pressuring them into yet another price reduction dialogue”, they blame inadequate legislation for high premiums being charged by investors from consumers on early delivery of cars.
“We’ve long been demanding that the government must change the relevant law for ensuring that the first registration of a vehicle is made in the name of the person who books it or in whose name the invoice is issued to ward off unscrupulous elements from charging premiums,” said a senior executive of an automobile manufacturing company who approached Dawn here on Wednesday.
The transfer of the vehicles, he said, to another person must also be forbidden for a period of, say, six months to ensure that the genuine buyers get the delivery on time without paying a premium on them.
However, the executive noted, the government had so far failed to implement the proposal of car makers who cut down on their prices in June on the asking of the government. “Instead, the government has opted to set up a Task Force for pressuring the manufacturers into second price reduction dialogue in less than six months,” he said.
The Task Force has been set up by the government to tackle the issues relating to prices, timely delivery and premium charged by the middleman. It is required to submit its report by September 30.
Industries and Production Minister Liaquat Jatoi came under heavy flak in the National Assembly on Tuesday on account of high car prices, late delivery to consumers and premium being charged by middlemen.
“It is like hanging a sword on the necks of the car producers. The proposals to be put forward by the Task Force would leave far reaching impact on the local automobile industry. It will determine the government’s commitment to the growth of manufacturing sector in the country,” the executive said.
He said the manufacturers had already reduced their prices and enhanced their production to meet the increased demand to “remove the difficulties being faced by buyers in timely delivery of cars and curb the practice of charging premium by investors”. Besides, he claimed, the manufacturers were themselves taking measures for allowing a fair chance to all for timely delivery of the cars. He added some car makers were considering delivering cars only to those persons who got them registered in their own names. But, he warned, such “steps could not bear fruit without the support of the government”.
He also opposed import of reconditioned cars as it would offer the unscrupulous people yet another opportunity to fleece public. Quoting former Commerce Minister Razak Dawood, he said this step would convert the country into a “junkyard”. “The government also is not going to get anything out of this except for ruining local automobile manufacturing.”