KARACHI, April 18: Import of completely built-up (CBU) cars has surged to $249 million in July-March 2011-2012 as compared to $89.3 million in the same period of last fiscal year.

Pakistan Bureau of Stat-istics figures do not mention quantity of imported vehicles.

Local car assemblers are also importing brand new cars and other vehicles which are not manufactured in Pakistan but they say that arrival of used vehicles in official import figures holds a big share.

An official in Honda Atlas cars said that the company had hardly imported 50 vehicles, including Honda Accord and CR-V vehicle in the last one year. Even other assemblers are importing brand new vehicles in limited quantity.

He claimed that the share of used cars in the official July-March 2011-2012 import figures is more than 90 per cent.”

Balochistan Wheels GM Sales and Marketing Shaikh Mohammad Iqbal said that if the government continues an adverse policy against the auto sector, the country would soon become a junk-yard of old and used cars.

He added that customers are paying higher prices for five-year old models and most of them have become obsolete and their parts are not available globally.

He said the government should check import of used cars as all those vehicles which were badly damaged and abandoned during worst Tsunami in Japan last year and those cars declared unfit in Japan and considered to be scrap are finding their way into Pakistan.

Iqbal said surprisingly most of used cars are being sold either at par or higher than the market price of similar newly produced cars in Pakistan in 2012.

He said that in 2011 imported Toyota Vitz car of 1000cc model 2007 was being sold between Rs950,000 and Rs1,000,000. Currently it is being sold in the range of Rs1,100,000.

“These dealers are charging Rs100,000 more without any justification,” he added.

He urged the government to look into all aspects before giving relaxation, especially the depreciation allowance which should be maintained at one per cent on imported used cars.

All-Pakistan Motor Dealers Association Chairman H M Shahzad said that around 37,175 cars from 660cc to 1,800cc, jeeps, SUVs were imported in July-March 2011-2012 as compared to total import of over 17,000 units in the July-June 2010-2011.

“Total import of used vehicles may hit 50,000 units by the end of current fiscal year,” he said, urging the government to increase the age limit of used vehicles import to 10 from five years, remove regulatory duty on above 1,800cc vehicles and allow commercial import of used cars so that customers get relief.

Meanwhile, Honda Atlas Cars raised prices by Rs30,000 in Civic and Rs25,000 in City on Wednesday.

A company official linked the hike in price to yen appreciation against the rupee, coupled with devaluation of the rupee against the dollar, which is making import of parts costlier.

The production of Honda Civic remained suspended from December 2011 to February 2012 while City was not rolled out from December 2011 to March 2012 due to parts supply problems from flood-hit Thailand.

Production of Civic resumed in March while production of City will get underway by the end of this month, he added.

Indus Motor Company raised prices of Toyota Corolla and Daihatsu vehicles by Rs20,000-50,000 in the first week of February followed by an increase of Rs10,000 by Pak-Suzuki Motor Company from April 1, 2012.