Car companies will now be slapped with penalties if they fail to make deliveries within 60 days of booking an order. The decision will be finalised in the upcoming budget with the new clause to be applicable from July.
The National Assembly Standing Committee on Industries and Production, chaired by Sajid Turi, decided Monday to impose a fine of 3% plus Kibor (Karachi Interbank Exchange Rate) on car companies that delay deliveries. The rate will be charged on the amount the buyer has paid.
It is to resolve ‘own-money’ problem.
Own money is the price an investor charges from a buyer, who wants to buy a car immediately. It is above a car’s actual price. It is a common practice in Pakistan’s car industry, where car assemblers sometimes take months to deliver an order. A buyer has to make a partial payment to book a car, that is delivered as late as six months sometimes.
The standing committee member Hamid Atiq Sarwar said that no dealer can now book a car order. The car company must keep checks and balances as bookings will be done through them.
