Small used cars import thriving
KARACHI, July 13: Showrooms are packed with multiple brands of used cars of 1000cc, 1300cc and 1500cc, mainly.
Out of total import of 55,703 units in July-June 2011-12, the share of cars up to 1,000cc is 24,530 units followed by arrival of 17,872 units of 1,300-1,500cc used cars. The government earned Rs31 billion in duties and taxes from total imports of used cars of which collection of customs duty alone is Rs20 billion.
Import of five year old used cars under transfer of residence, personal baggage scheme and gift schemes have been thriving despite the fact that the sale of locally assembled cars also posted growth of 23 per cent in 2011-2012 as compared to 2010-2011.
The third largest import of 7,854 units registered in 1,001 to 1,300cc category followed by 4,340 units import from 1,601 to 1,800cc
engine power. Jeep (4×4) imports stood at 799 units.
Chairman All Pakistan Motor Dealers Association (APMDA), H.M. Shahzad said, out of total import of over 55,000 cars in 2010-2011, around 53,900 used cars came under personal baggage scheme.
Total imports of vehicles in 2010-11 recorded at 16,814 units in which 85 per cent were small cars. The government collected Rs12 billion in shape of various duties and taxes. The imports of used cars can cross 100,000 units in the current fiscal year if the government allows increase in the age limit of vehicles to 10 years from five years, he said. Besides, the government should allow commercial import of vehicles and scrap the existing various schemes for import of used cars.
On higher engine power vehicles, he urged the government to remove 50 per cent regulatory duty and by agreeing the demands, the government can fetch Rs50-60 billion in terms of duties and taxes.
It seems that cash rich car lovers appear fascinated by the designs and colours of used imported vehicles rather than pondering over availability of their parts and accessories.
However, Shahzad claimed that there is no problem in getting parts of these imported vehicles as rising volume of vehicles also encourages market traders to intensify the imports of parts.
Many people are seen maintaining both locally assembled and imported vehicles at their homes. However, only few used imported vehicles and enjoy good resale value. The discontinuation of locally assembled Daihatsu Coure from May 2012 and also Suzuki Alto may force buyers to go for imported used cars up to 1,000cc and locally assembled Suzuki Mehran till the car assemblers introduce new 1,000cc models in the market.