Auto dealers claim that local car assemblers are functioning below capacity to create an artificial shortage and to force buyers into paying a premium (also known as ‘own money’) for quicker delivery. This, say dealers, causes the vehicles to be sold in the black market.
As valid as these claims maybe, one can’t help but wonder how is this artificial shortage really created? Who is responsible for it? A customary visit to any auto dealer in the city will reveal that he has several new, locally manufactured vehicles on sale. These are vehicles that can be procured earlier than usual (rather than waiting for the standard vehicle delivery period) if the buyer is willing to pay above and beyond the market price (read ‘premiums’).
While the auto industry may be at fault for not working at optimum capacity, it appears that the dealers’ association isn’t entirely blameless. In fact, in some ways, they actually contribute to the shortage by hoarding these vehicles just so that they can make extra money at the expense of the buyer.
In this tug-of-war between dealers and manufacturers, the only person suffering in the end is the buyer. Whether he buys a locally manufactured vehicle or an imported one, he gets no choice in the matter as he has to put up with and give into the demands dictated to him by the auto dealer.
ALAMGIR KHAN
Karachi
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