Sunday , June 16 2019
Breaking News
Home / Karachi / Auto makers fail to cash in on dwindling used cars import
Auto makers fail to cash in on dwindling used cars import

Auto makers fail to cash in on dwindling used cars import

KARACHI: Local vehicle assemblers, despite hectic lobbying, failed to take advantage of the sharp drop in the sale of used cars year-on-year during 2013-14.

As per the relevant data, the import of used vehicles (from 660cc to above 3,000cc including 4×4 jeeps) plunged to 22,185 units in 2013-2014 as compared to 44,767 in 2012-13.

The government collected around Rs9 billion in customs duty during2013-14 from used vehicle import against Rs18 billion in 2012-13.

Moreover, around 16,193 units of up to 1,000cc cars were imported compared to 26,525 units in 2012-13. The customs duty collections consequently fell to Rs3.46 billion from Rs4.2 billion. From 1,001-1,300cc, only 37 cars were imported as compared to 2,193 units.

According to All Pakistan Motor Dealers Association (APMDA), the import of 1,301 to 1,500cc cars stood at 2,646 units compared to 12,255. Only two units were arrived in category of 1,501cc to 1,600cc in 2013-14 compared to 48 units in 2012-13.

Total imports in 1,601-1,800cc stood at 2,364 units compared to 2,427 units, while in 1,801cc- 3,000cc segment, only 35 units came from abroad compared to 61.

Only 18 units of above 3,000cc vehicles were imported during 2013-14. The number was 82 in 2012-13. In jeeps (4×4), around 890 units came compared to 1,176.

APMDA Chairman HM Shahzad said local car assemblers failed to raise their sales amid persistent decline in imports of used cars. Year-on-year sales of locally produced cars remained flat in 2013-14.

In budget 2014-15, the government increased the import duties on used cars. Besides, changes in withholding tax would also affect the retail price of used cars.