Car Companies Ordered to Repay Own Money and Interest on Late Deliveries

The Senate Standing Committee on Industry and Production was told on Friday that if the vehicle was not delivered within 60 days of the reservation, the buyer could get his money back in addition to paying KIBOR plus interest at the rate of 3%.

The committee met under the chairmanship of Senator Khaleda Atib in which a briefing was given by Senator Dr. Asif Al-Karmani on behalf of the Engineering Development Council on the issue of funds for vehicle protection.  They were also told that the buyer would have to pay only 20% of the total price of the car at the time of booking.

Regarding the quality and standard of products and auto parts, the commission was informed that Honda's products are manufactured locally which affects the quality of the product.  It was also stated that the Economic Development Board has no role in standardizing production.

The Pakistan Standards and Quality Control Authority (PSQCA), an independent body under the Ministry of Science and Technology, has a mandate to regulate and enforce quality standards in Pakistan.

The committee also expressed concern about the procedure by which a vehicle is cleared for road testing and inquired whether the procedure is subject to reverse inspection by an authority other than the company.  ۔  The committee also questioned the delay in the supply of cars by the Economic Development Board.

The committee was also briefed on the Automotive Industry Development and Export Policy (AIDEP 2021-26) which has given incentives to the automotive sector under the Automotive Industry Development and Export Policy (AIDEP 2021-26).  It was informed that all taxes on locally manufactured cars up to 1,000 cc have been abolished (My Gary Scheme).  Prices for locally manufactured vehicles (over 1,000 cc) have also been reduced by 2.5% FED reduction for all classes of cars / SUVs and light commercial vehicles.

The meeting was attended by Senator Fida Mohammad, Hidayatullah, Dr. Asif Al-Karmani, Mohammad Abdul Qadir and Senator Shahid Khalid Butt.  The session was also attended by the Secretary, Ministry of Industries and Production, Executive Director, Engineering Development Council and several senior officials.