LAHORE – The sales and purchase of used vehicles has drastically fallen in the city owing to a relaxation in the import policy of vehicles, stakeholders told Pakistan Today. They said that queries from customers have declined in the past week and new business is almost zero.
The government has announced the relaxation on the import of five-year old vehicles and it is expected that the prices in local market will decrease. It is also expected that the local manufacturers will also lower the prices and that it would also alter the price mechanism in the market. All these combined factors have resulted in a cautious policy on the part of buyers.
The market sources said it is expected that the prices of used vehicles will decline by at least Rs 25,000 to Rs 60,000 depending upon the model and condition of the vehicles. The prices of vehicles in the local markets have surged in the last two years and business activity related to used vehicles has declined due to high prices. Local businessmen hoped that the business will revive with the relaxation in the import policy of used vehicles.
A motor dealer based on Jail Road, Rizwan Goraya, stated that the number of customers has decreased in recent days, as people are less inclined to buy vehicles in such a situation. “Everyone is waiting for the prices of vehicles to settle and then make a purchase decision,” he said. He added that there are also rumours in the market that local manufacturers are decreasing their prices.
“If local manufacturers decrease by around Rs 50,000 on 800CC car, then the price of used vehicle would decline at least Rs 60,000,” he said. He went on say that this week there have been very few customers in weekly automobile bazaars. “The number of customers at Samanabad, Walton Road, Johar Town and other markets decreased this week,” he added.
Another car dealer, Imran Iqbal, said he had finalised deals last week but as soon as news of the adjusted import policy broke, some buyers cancelled the deals. “The customers said they would wait for the new prices,” he said, adding that in recent days, buying of used vehicles has decreased. He hoped that in future, the business would revive and he would earn handsome profits.
Jail Road Traders Association Secretary General Zafar Iqbal said that the local market would determine the prices of used vehicles after arrival of fresh stocks from abroad. He said it is better to wait for two or three weeks; in this way, the influx of fresh stock will have an impact on prices in local market, he stressed.
He said that an irrational tax regime in the automobile industry have a negative impact on the business while local manufacturers also increased the prices. “Import of used vehicles would pressure local assemblers to decrease their prices,” he opined and insisted it would be beneficial for customers, who will be able to buy used automobiles at affordable prices.
He said that import and custom duties depend upon the model and engine capacity. “The import of used vehicles would definitely lower the prices in the local market,” he opined.
