Carmakers get stay order against auto policy

[Devil Soul]

Carmakers get stay order against auto policy
By Zafar Bhutta
Published: August 10, 2016
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Policy calls for enforcement of safety rules, installation of anti-theft device. PHOTO: PAK SUZUKI

ISLAMABAD: Two key players in the automobile industry – Indus Motor and Pak Suzuki Motor Company – have challenged the new auto policy and got a stay order from the Sindh High Court against its implementation, indicating they are not immediately inclined towards offering technologically improved and cheaper vehicles.

Pak Suzuki Motor – the Pakistan arm of Japanese carmaker Suzuki – has a monopoly in the small car segment while the market for heavy-engine vehicles is split mostly between Honda Atlas Cars and Indus Motor – the makers of Toyota Corolla.

Auto policy approved, door wide open for new entrant

Hyundai, Suzuki’s last competitor in the market, has not been producing vehicles since early 2014.

The new auto policy, besides giving guidelines on timely delivery to customers, calls for the development and enforcement of safety regulations, compulsory installation of immobilisers in vehicles to stop incidences of theft and putting in place a product recall system in line with global practices.

The policy offers some incentives to new entrants for breaking the monopoly of existing car manufacturers. Consumer welfare is a key element of the policy announced by the government in March this year.

According to officials aware of the development, Indus Motor was to install immobilisers in its XLI (basic) variants, Suzuki in Cultus and Mehran models and Honda Atlas Cars in the City variant.

However, the carmakers have refused to install the immobilisers immediately, arguing it is not possible for them to complete the task in a short time. They require six months to one year as vehicle engines need to be changed for putting in place the anti-theft device.

A promising auto policy

“We need three to five months to receive the delivery of car engines and after that it will be possible for us to install the immobilisers,” the carmakers told the government, adding they would be able to install the device in new car models.

According to the officials, the Suzuki management told the government that they were planning to replace Mehran cars with some other models, therefore, the immobilisers could not be made part of this model.

However, the company agreed that it would introduce the immobilisers in the new models.

Booking and delivery

In an attempt to address complaints of delay in the delivery of locally assembled vehicles, the government has decided that initial payment at the time of booking should not be more than 50% of the cost of vehicle and the price and delivery schedule – not exceeding two months – must be finalised at that time.

In case of delay, the company will be required to offer a discount at the rate of Kibor plus 2% on the date of delivery – a move aimed at shortening the time period.

New auto policy – missing great opportunity

Before the announcement of the policy, buyers were forced to pay a substantial amount, sometimes 100% of the total cost, for booking vehicles and then wait for a long time before delivery. If the price escalated in the meantime, the consumers were also required to pay the extra amount on the delivery date.

This had helped the black market flourish where consumers, looking for prompt delivery, were forced to pay a premium.

However, the new auto policy carries varying measures aimed at safeguarding the interest of consumers.

Published in The Express Tribune, August 10th, 2016.

 

[Muhammad Omar]

BC

 

[Paksanity]

Someone needs to sue mother companies in Japanese court with the help of Pakistani community in Japan. Preferably a victim of poor safety standards. Law suit can cost them billions of dollars.

 

[Shabi1]

Someone needs to sue mother companies in Japanese court with the help of Pakistani community in Japan. Preferably a victim of poor safety standards. Law suit can cost them billions of dollars.

The Pakistani subsidiaries are acting greedy. Heard rumors Honda Japan has called for an audit of Honda Pakistan in response to the quality embarrassment it has faced on the new Civic launch. Honda Pakistan cut too many features out and is being criticized for bad finishing despite having a hefty price of almost Rs2.5-3million for the Civic.
However despite everything their cars are sought after like crazy and the new civic being sold at a Rs 2 lakh premium by agents. Its the consumers who let the companies get away with it all.

 

[Paksanity]

The Pakistani subsidiaries are acting greedy. Heard rumors Honda Japan has called for an audit of Honda Pakistan in response to the quality embarrassment it has faced on the new Civic launch. Honda Pakistan cut too many features out and is being criticized for bad finishing despite having a hefty price of almost Rs2.5-3million for the Civic.
However despite everything their cars are sought after like crazy and the new civic being sold at a Rs 2 lakh premium by agents. Its the consumers who let the companies get away with it all.

Consumer is to be blamed too, I agree. We have actively sponsored this shady business of premium and all that. But this does not absolve parent companies from their responsibilities. They are also pocketing huge profits here. If someone can take it up in a Japanese court and manages to dent reputation of these companies, job is done. You can not sue them for quality control like panels don't fit together or leather is not stitched well; but you can definitely sue them for omitting safety features like poor material that crumbles in crash, lack of crash testing and airbags etc.

 

[Path-Finder]

spineless people we have in parliament utter mofo's they can be goaded by car makers and not enforce a policy. Is this country in the hands of the people or is it to be be taken on a ride by whom ever pleases

 

[Skywalker]

So they bought the judge, guess what did he get in return, a new car, cash or jobs for his kids.

 

[sparten]

The headline is misleading. They have gotten stays against adverse actions against them for non-fulfillment of certain types of new technologies with specified timeframes., There argument is that its impossible for them to so fulfill.

Its NOT a stay against the full auto policy.

 

[I S I]

“We need three to five months to receive the delivery of car engines and after that it will be possible for us to install the immobilisers,” the carmakers told the government, adding they would be able to install the device in new car models.

Translation: We will charge 1 lac more for this feature & you can't do sh#t.

 

[v9s]

Guys, there's a thing called product life-cycle. Car makers cannot add a feature or change a spec by snapping fingers. There's a reason for a stay and that is to get things going under existing plans for new models.

Suzuki's excuse, though pathetic considering how long it has stretched the mehran and cultus lines, makes sense because they're about to launch new models and it would be a waste to give these features in cars being phased out.

The headline is misleading. They have gotten stays against adverse actions against them for non-fulfillment of certain types of new technologies with specified timeframes., There argument is that its impossible for them to so fulfill.

Its NOT a stay against the full auto policy.

Exactly. Thanks for making it clear.

The Pakistani subsidiaries are acting greedy. Heard rumors Honda Japan has called for an audit of Honda Pakistan in response to the quality embarrassment it has faced on the new Civic launch. Honda Pakistan cut too many features out and is being criticized for bad finishing despite having a hefty price of almost Rs2.5-3million for the Civic.
However despite everything their cars are sought after like crazy and the new civic being sold at a Rs 2 lakh premium by agents. Its the consumers who let the companies get away with it all.

Meray bhai...majority shareholder of Honda Atlas Cars Limited is Honda Japan. Most of the top management (including production and QC) is Japanese.

The audit is a bull$hit PR move by Honda - the QC issues were okayed by the Japanese themselves. People are the same everywhere - don't think because they're Japanese, they had nothing to do with the crap they are selling now.

 

[ziaulislam]

they were not bothering till now to get a stay, as they thought no body will come..its only when chinese company showed interest in gawadar and Mr Afridi FWO pakistani venture announce assembly plant for their vehicles that they scrambled for a stay shameful tactics but yet successful, they can now simply linger on a case in corrupt courts for 5-10 years to make this another steel mills fiasco

 

[Clutch]

Someone needs to sue mother companies in Japanese court with the help of Pakistani community in Japan. Preferably a victim of poor safety standards. Law suit can cost them billions of dollars.

I have an alternative or maybe in concurrent method... use social media to upload videos of Honda, Toyota, and Suzuki... make youtube videos showing the sub par quality and safety concerns. Make it available for a global audience... hurt their reputation on an international scale. Once the brand get damaged abroad then you will see a shift in their policy!

I have an alternative or maybe in concurrent with your proposal... use social media to upload videos of Honda, Toyota, and Suzuki... make youtube videos showing the sub par quality and safety concerns. Make it available for a global audience... hurt their reputation on an international scale. Once the brand get damaged abroad then you will see a shift in their policy!

 

[Asian.Century]

Hyundai, Suzuki’s last competitor in the market, has not been producing quality vehicles since early 2014. why??? Want atleast Hyundai production back in Pakistan with big cars, it's given top class cars.


When will Toyota, Suzuki and Honda monopoly be ever ended in Pakistan??? Toyota and Suzukis are making the most pathetic and expensive cars in Pakistan, they are highly not safe, no air bags, no advanced safety features and mechanics.

Guys make youtube videos, facebook uploads, twitter about pathetic subpar quality of Toyota, Honda and Suzuki in Pakistan and how hefty price these Japanese car makers are charging common citizens of Pakistan.

It is high time to say goodbye to Suzuki and Toyota in Pakistan.

 

[Asian.Century]

Automakers Suzuki, Honda Atlas & Toyota in Pakistan are complete cheats, who failed to not only refuse to put basic safety measures in their cars, such as air bags, good quality seat belts, modern design & proper finishing. The car sold in Pakistan at an exorbitant high prices as compared to other markets.