Ministry of Industries and Production (MoIP) has increased the penalty rate for delayed deliveries by automakers. According to an official source, the rate has been hiked from KIBOR+2 percent to KIBOR+3 percent.
MoIP has noted that several auto manufacturers and dealerships have failed to deliver vehicles on time. Under the Automotive Policy, car companies must deliver vehicles to customers within 60 days from the date of booking.
A company that fails to do so must provide compensation to customers. They are also bound to provide evidence of that compensation to the Engineering Development Board (EDB) on a bi-annual basis.
EDB has also addressed complaints regarding compensation. The source stated that in case an automaker fails to offer compensation MoIP has the right to cancel their manufacturing certificate. Thus far, all automakers have promptly paid their penalties on late deliveries to comply with the law, the source claimed.
Additionally, the government has taken the following measures to ensure consumer welfare:
Discouragement of Illegal Premiums (Own-Money)
The government has imposed taxes amounting to Rs. 50,000, Rs. 100,000, and Rs. 200,000 against vehicles according to their engine displacements on registration. The tax is applicable if a person buys a new car and sells it to the next person in an unregistered condition within 60 days of delivery.
Fixed Booking Amount
Carmakers must only charge 20 percent of the total invoice amount at the time of booking. They can only receive the remaining amount upon delivery.
Monitoring Committee
The government has approved the formation of a high-powered committee under the chairmanship of Secretary MoIP, whose sole responsibility will be to ensure the implementation of the aforementioned clauses.
The committee will constitute representatives from EDB, Ministry of Commerce, Federal Board of Revenue (FBR), Competition Commission of Pakistan (CCP), Ministry of Science and Technology (MoST), State Bank of Pakistan (SBP), Pakistan Automotive Manufacturers Association (PAMA), and Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).
What’s new. Its a months old decision.
This is all nonsense
Companies damn care for end user
I book Kia picanto in July 20 and even after paying additional 378k on original booked price, I don’t have the delivery till date and no chance before July.
I booked KIA picanto in Nov 2021 with full payment now KIA asking to deposit 625000 additional amount. So now I am suppose to pay additional amount or not.
Probably write a complaint. And lets see how it goes.
Better give a try before paying huge money