KARACHI: Demand for new cars has outstripped their production, and buyers are either paying premium (on money) on spot sales or are asked by the authorised dealers to wait for two to four months to get the delivery.

As for Pak Suzuki Motor Company Limited (PSMCL), the company’s engagement to meet the orders for Bolan and Ravi for Punjab Taxi Scheme is said to be the key reason for delayed delivery to private buyers.

The delivery time of both the models is three months after booking. However, for a quick delivery, the authorised dealers are demanding Rs30,000-35,000 premium for Bolan and 35,000-40,000 for Ravi.

The delivery time for Mehran and Cultus is two to two-and-a-half months. Dealers are charging Rs10,000 on standard model of Mehran and Rs25,000-30,000 for the AC model. The extra amount for quick delivery of Suzuki Cultus is Rs15,000-20,000.

The assemblers have increased their production capacity which is evident from the production figures released by Pakistan Automotive Manufacturers Association (PAMA).

Many dealers are reported to have vehicles’ stocks on which they make money on spot delivery. It has also been in practice that people who have taken the delivery of new cars are in constant touch with the dealers for vehicle’s instant resale in order to make a quick buck.

In Toyota Corolla, the premium ranges between Rs80,000 and Rs85,000 on automatic models and up to Rs130,000 on manual models.

The menace of premium usually erupts in the car market when delivery timing of locally assembled cars extends for longer months.

Meanwhile, the car industry has been enjoying satisfactory sales despite thriving imports of used cars. All told, 120,942 locally produced cars were sold during July-April 2014-15 compared to 97,232 units a year earlier. Production of cars rose to 121,645 units from 96,407 units.

Rising demand for cars can be ascertained from a 38.5 per cent growth in imports of completely knocked down (CKD) and semi knocked down kits (CKD/SKD) during July-March 2014-15 to $351 million from $253m in same period last year.

The new generation Toyota Corolla remained in high demand as its sales peaked to 41,650 units compared to 25,674, while its production grew to 41,764 from 24,830 units. Honda City sales also improved to 12,382 units from 10,786.

Honda Civic is struggling after introduction of new Corolla. A total of 6,399 units of Honda Civic were sold compared to 7,956 units in July-April 2013-14.

Suzuki Swift sales fell to 2,931 units from 4,120 units while Wagon R has been on the rise since December 2014. Its July-April sales were recorded at 4,027 units.

Backed by Punjab Taxi Scheme huge orders, Suzuki Bolan sales climbed to 17,180 units in the first 10 months of this fiscal year as compared to 11,415 units. Production of Bolan increased to 17,506 from 11,689 units. Suzuki Ravi sales stood at 17,146 units from 10,175 units, while its production reached 17,407 from 10,408 units.

Mehran sales slightly inched up to 24,903 units from 24,202 while Suzuki Cultus sales dropped to 11,397 units from 12,521.

Published in Dawn, May 14th, 2015

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