KARACHI, Oct 20: Car segment continued to show a brisk performance in July-September 2003-2004, registering an increase of 37 and 38 per cent in production and sales as compared to same period last fiscal but the issues of premiums and late deliveries of cars remained unresolved.
A total of 27,983 and 28,799 cars were produced and sold in July-September 2003-2004 as against 20,348 and 20,878 units in the same period of previous fiscal.
The figures clearly show that that no negative impact has been witnessed on the sale and production of cars as was earlier anticipated by the analysts and car makers over abrupt decline in booking in July and August in view of government's condition of binding assemblers to sell cars to only national tax numbers (NTN) holders in the July budget.
In the last three months, a number of persons have come under the tax net by securing the NTN numbers. Besides, a large number of people opted to buy cars on cash basis instead of going through leasing and car financing being offered by leasing companies and banks.
However, for the prospective buyers there is virtually no relief in sight in the near future as they have to wait for three to six months for locally assembled cars despite persistent increase in production.
Car makers have already cautiously forecasted that the menace of premiums and late deliveries are likely to exist till June 2005 in view of phenomenal demand that is rising with the passage of time.
Overall production of Pak Suzuki Motor Limited (PSML), which assemble Baleno, Cultus, Alto, Mehran, Jeep, Bolan and Ravi, surged by 43 per cent to 17,210 units from 12,063 units while sales jumped by 35 to 17,396 units from 12,894 units.
Total production of Indus Motor's Corolla, Cuore and Hilux increased by 26 per cent to 8,982 units from 7,122 units while sales jumped by 34 per cent to 9,036 units from 6,735 units.
Production of Civic and City, produced by Honda Atlas Car, rose by 75 per cent to 3,976 units from 2,272 units while sales recorded a rise of 73 per cent to 3,856 units from 2,222 units.
Dewan Farooqui Motors' Hyundai Santro, Shehzore, Kia Sportage and Kia NGV posted a rise of 49 per cent to 2,333 from 1,563 units while sales surged by 85 per cent to 3,143 from 1,700 units.
Federal Industries and Production Minister, Jehangir Khan Tareen in the first meeting with assemblers in September expressed displeasure over late deliveries and high premiums. However, it appears that the new minister has been following the footsteps of former minister, Liaquat Ali Khan Jatoi by opting not to go beyond warning the assemblers over these two most pressing issues that have been hurting genuine buyers.
"Over the last three years, these issues have been focussed but no solution had been found," said an observer. The government as well as the assemblers have virtually failed to check the entry of speculators in the markets.