Prices of imported used cars hiked by 14 PC

Failing to dodge the ECC’s decree on used cars, the dealers have increased the prices of five-year-old imported cars up to 14 percent. A survey of more than 10 used car dealers, including the auction price at Sohrab Goth during last two weeks, reveals that the used car dealers have increased the price of Mira/Suzuki Kei up to Rs 55,000.
The price of Vitz/Passo has also been increased up to Rs 80,000; Axio’s price increased by Rs 110,000; and Premio’s price was increased by Rs 160,000. It is worth adding that these old used cars are already being sold at higher prices than locally made zero meter cars.
Pakistan Automobile Manufacturer Assemblers Dealers Association (PAMADA) Vice President Iqbal Hussain Shah talking to the scribe said that “the price increase of old used cars reflect that the dealers don’t pay any heed on the concerns of the consumer and are completely bent upon fleecing the consumers. Interestingly All Pakistan Motor Dealers Association (APMDA) always portray themselves as one of the well wishers of Pakistani nation, seems quite busy in making profit from their imported used cars stocks/investment. This clarifies how much they love common man of Pakistan.” Prices of locally manufactured cars are stagnant from last 6 months and only Honda Civic’s price was revised after launch of its 2013 model packed with additional accessories and features.
Meanwhile the US$ is touching new, highs and local car assemblers are absorbing most of the cost impact. Iqbal said that the local auto sector of the country urged the government to consider the strengthening of Japan’s Yen against US dollar in the last few years. He said “today, the disparity between Japan’s Yen and US dollar is much low. One US dollar was of 120 Japanese Yen in 2005, but since then the Yen has strengthened and now in November 2012 its value is 79 against one US dollar. This calls for a revision of used car duty slabs which were fixed in 2005, so that the consumer can know how they are being fleeced by the used cars dealer mafia”. based on today’s value of the Yen, the proposed duty slabs for vehicles up to 800c is $6650 against the current fixed duty of $4400 on a used car which was fixed on the value of Yen in 2005. Similarly, for vehicles of 8001-1000cc, the proposed duty is $8312 against the fixed current duty of $5500; for 1001-1300cc the proposed duty is $16625 against current fixed $11000; for 1301-1500cc the proposed duty is $23275 against fixed current duty of $15400; for 1500-1600cc proposed duty slab is $28262 against fixed current duty $18700; and for 1601-1800cc the proposed slab is $26184 against the current fixed duty of $23100.
Pakistan Customs did not revise the Import Trade Price (ITP) on the imported used cars, thus allowing dealers to import huge number of cars at concessional rates. Consequently, the non-revised and reduced duty on imported used cars caused huge inflows of cars in the local market at the expense of heavy losses to national exchequer. Iqbal thought that it was high time for the government and the nation to realize what is in the national interest. He appreciated government’s recent decision to cut down used car age limit from 5 to 3 years and concluded that “this decision will work as a new lifeline for the local auto industry and new investment will come in from new and existing players.”