Small car buyers have no choice

KARACHI, July 16: The decline in imports of used cars has curtailed the consumers right to choose freely in assemblers-dominated auto sector of the country. The market shrank for small car buyers mainly due to suspension of locally assembled Daihatsu Cuore and Suzuki Alto.
Only 26,525 cars of up to 1,000cc landed in Pakistan in the fiscal year 2012-13 as compared to more than 35,000 in the preceding fiscal.
The main reasons behind the drop are reduction in age limit of used cars to three from five years and cut in depreciation.It was expected that the termination of Cuore and Alto would create big demand for Suzuki Mehran, Suzuki Bolan and Suzuki Cultus, but the figures suggested fall in sale of these brands.
According to Pakistan Automotive Manufacturers Association (PAMA), total car sales fell to 118,830 units in FY13 as compared to 157,325 units in FY12. Only the sale of Honda Civic and Honda City picked up while Toyota Corolla, Suzuki Swift and Suzuki Liana suffered a drop.
Honda Civic and City sale swelled to 9,950 and 11,285 cars as compared to 4,977 and 7,142 while Toyota Corolla, Suzuki Swift and Suzuki Liana sales dropped to 32,608, 6,096 and 164 units as compared to 46,207, 7,040 and 450, respectively.
Suzuki Cultus, Suzuki Mehran and Suzuki Bolan sales plunged to 13,308, 32,407 and 12,941 units as compared to 13,693, 35,131 and 22,540 units, respectively.
All Pakistan Motor Dealers Association (APMDA) chairman H.M. Shahzad said that overall import of used vehicles and other automobiles also declined to 49,395 units in FY13 as compared to 59,800 units in FY12. However, he said the imports of vehicles fetched around Rs20 billion only in terms of customs duty while the figures crossed over Rs36 billion if other taxes and duties are included.
He said if only cars starting from 660cc to 3,000cc, including Jeeps (4x4), are taken, the import plunged to 45,378 units as compared to around 55,000 units.
He said the government should consider enhancing age limit of used cars, especially 660cc, to five years as these cars give 18 to 20 km per litre of petrol and do not require CNG. He said the previous government reduced the age limit of used cars to three from five years in its last days.
According to Pakistan Bureau of Statistics, total import of cars (mainly from Japan) fell 12 per cent in July-May 2012-13 to $294 million from $335 million in the same period of the preceding fiscal year.