auto makers will reimburse for Late Delivery of Vehicles

Pakistani automobile industry finally saw a glimmer of hope after the Auto Development Policy 2016-21 but the Ministry for Industries and Production has revealed that the automakers are responsible for the late delivery of vehicles in Pakistan.

Sixty days is prescribed time for the delivery schedule according to the auto policy and the delay is resulting in black marketing and extra profit for investors.

Under the regulations, late delivery of vehicles will result in “discount @ Kibor plus 2 percent prevailing on the date of final delivery/settlement from the final payment”

Some car companies in Pakistan are not delivering variants of cars in the assigned 2 months and due to late delivery of vehicles, they are being sold at a higher price which is known as “own.” Thus, in turn, the investor makes extra money as people do not want to wait for their turn for the vehicle of their choice.

The Minister in a written reply has informed that his office has taken up this issue and is engaging all the relevant stakeholders including manufacturers/OEMs, FBR, dealers, banks/SBP and end users to address the issue on the ground with federal-provincial coordination and cooperation from sale/purchase to the registration of the vehicle.

Sadly, there is no legislature to enforce this recommendation in the auto policy 2016 and thus we haven’t seen many companies reimbursing for late delivery of vehicles.

He also revealed that the automakers are selling cars at higher rates in Pakistan as compared to their prices in the global market.

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