The government has made cracks in the ranks of auto makers after allowing non-filers to buy cars up to 1300CC- a decision that will certainly be challenged by the Japanese government at the highest level.
M/s Suzuki Pakistan which has a major share in Pakistani market has welcomed the decision announced in the ''mini-budget'' in which non-filers were allowed to purchase cars up to 1300CC. However, the two other car assemblers i.e. M/s Honda Atlas cars and M/s Toyota Indus Motors are not happy with the decision.
According to M/s Suzuki, due to ban on purchase of cars by non-filers, the local auto companies suffered a lot and M/s Suzuki Pakistan alone suffered losses of around 32 per cent.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) which supplies accessories to the car assemblers have approached the federal government, requesting that this decision be amended to 1350CC cars to cover Honda cars (whose smallest vehicle is 1329CC).
In a letter to Prime Minister''s Adviser on Commerce, Textile, Industries, Production and Investment, Abdul Razak Dawood, M/s Honda highly appreciated government intervention in removing the ban on non-filers to purchase passenger car, but it sought that lifting of ban that should not be restricted to cars up to 1300cc although it inferred that the government set that limit keeping affordability of the non-filer buyers in view. The M/s Honda stated in the letter that one of its variants 1339CC Honda City is a most sought after model because of higher engine power and the price less than 1300CC produced in the country.
President/CEO Honda Atlas cars, Hironobu Yoshimura and Vice President and Company Secretary, Maqsood-ur-Rehman Rehmani in their joint letter to the Adviser have requested the Prime Minister''s Adviser to increase the engine capacity from 1300CC to 1350CC, enabling the non-filers to buy this vehicle too, which is evidently more affordable, cheaper than other 1300CC cars, and is popular amongst the middle income group, due to higher power and additional features.
The letter has also been addressed to Chairman Engineering Development Board (EDB), Almas Haider.
When contacted, Chief Executive Officer (CEO) Indus Motors Company Limited (IMC) Ali Asghar Jamali said that the limit set by the government was not fair and that should be up to 1350CC so that City and Swift also get advantage.
The sources said, Ministry of Industries and Production will take up this issue at the appropriate forum but it would be premature to pin any hope on a change in the existing decision. However, the issue will come under discussion at a meeting next week convened to brainstorm for improvement in the role of EDB.
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