The tricky car pricing mechanism of automobile sector
continues to deprive citizens of the real benefits of the good policy
decisions and historic economic reforms initiated by the government.
Though the automobile sector registered an unprecedented growth of at
least 98 percent in the previous year and the volume of production
increased tremendously yet the benefit was not passed on to the
Instead a coterie of vested interest including
automobile manufacturers and assemblers are sitting on the piled up by
demanding trillions of rupees in advance booking for different models of
the cars. The genuine buyers continuously faceing hardship in getting
delivery even after paying 100 percent in advance as desired by the
The outstanding results in economic sectors of the
country are reflected in the fact that purchasing power has increased to
an extent that during last two fiscal years (2002-2003) and (2003-2004)
there was an unprecedented increase in production of cars as well as two
wheelers which touched to the level of 658,968 units and noticeable
growth in sales that is 650,727 units. Trucks, Buses, Tractors and other
products are in addition to the above figures.
The number of vehicles sold during last two years are
more than double that were manufactured and sold during previous four
years (1998 to 2002 to 2003). The month of the June 2004 has broke the
record in sale for which figures are still being compiled.
There are some lacunae in the mechanism for
automobile sale, which are not in favor of the customers. The intended
customer who desires to buy a car either on cash payment or through car
financing scheme of the banking or leasing company has to wait for four
to six months even after paying 100 percent in advance.
Taking advantage of the boom, the manufacturers and
assemblers are demanding 100 percent advance payment and even after
receiving the money, the companies were sitting on the huge piled up
money for delivering in four to six months, on the other hand the
middleman was also paying extra money to the tune of Rs. 50,000 to Rs.
60,000 per car.
"The money minting game will continue, even if
you reduce the advance payment to any level," said a car dealer. He
said that who has the car booking right? This has not been declared so
far, however, cars are being booked by those who already have cars and
they are not in emergency. One who is buying a car for the first time
has to wait till the timeframe given by the manufacturers. The
tremendous growth in the industry and increase in production volume was
being tackled without capacity building.
PRODUCTION & SALE
The total volume of production during 1998-99 was
estimated 47,383 units during (1998-1999) and 46,697 units were sold.
According to break up, during the year 1999-2000 over 39,497 cars were
produced. 47,117 units were produced and 46,904 were sold in 2000-01. At
least 51,374 unit were sold in 2001-02. During (2002-2003) 75,491 units
were produced and 75,152 were sold.
The company produced 3,928 and 3,794 units sold during (1998-1999).
4,871 units were sold in (1999-2000) 584 were produced and 5,873 were
sold during (2000-2001). 4,615 produced and 4,625 sold during
(2001-2002) 4,610 produced and 4,537 were sold during (2002-2003) and
5,998 were produced and 6,097 were sold during (2003-2004).
As many as 2,412 were produced and 2,045 were sold during (1998-1999).
20,905 were produced and 2,883 were sold during (1999-2000). 1,251 were
produced and 1,484 sold during (2000-2001). 1,240 produced and 1,188
sold during (2001-2002) 2,608 were produced and 2,588 were sold during
(2002-2003) and 4,173 were produced and 4,062 were sold during
As many as 8,369 were produced and sold 8,267 during (1998-1999). 8,705
were produced 8,779 were sold during 1999-2000). 8,486 were produced and
8,117 and sold during (2000-2001). 5,763 were produced and 6,151 sold
during (2001-2002). 12,861 were produced and 12,867 were sold during
2002-2003). 20,525 were produced and 20,321 were sold during
units were produced and 546 sold during (1998 to 1999, 83 cars were
produced and 95 were sold during (1999-2000). 319 were produced and 310
were sold during (2000-2001). 81 were produced and 113 were sold during
(2001-2002). 51 produced and 67 were sold during 2002-2003). 26 were
produced and 25 were sold during (2003-2004).
Production of Classic started during (1999-2000) during which 890 were
produced and 825 were sold. 1,784 were produced and 1,375 were sold
during (2000-2001). 2,091 were produced and 2,287 were sold during
(2001-2002). 459 were produced and 687 were sold during (2002-2003) and
188 were produced and 81 were sold during (2003-2004).
production of Cutlus started during (1998-1999) during which 6,991 were
produced and 6,768 were sold. 4,635 were produced and 4,824 were sold
during (1999-2000) 6,290 were produced and 6,027 sold during
(2000-2001). 5,441 were produced and 5,637 were during (2001-2002).
8,097 were produced and 7,927 were sold during 2002-2003. 10,810 were
produced and 10,795 were sold during 2003-2004.
cars production started from 2000-2001 during which 4,489 were produced
and 4,187 were sold. 2,816 were produced and 3,072 were sold during