New Cars: Carmakers get strict orders from PAC
- By Web Desk -
- Oct 18, 2022
ISLAMABAD: The Public Accounts Committee (PAC) has issued strict orders to carmakers to hand over new cars to the customers within a month who have made made cent per cent advance payment, ARY News reported on Tuesday.
The orders were issued by the Public Accounts Committee (PAC) in today’s session chaired by the chairman Noor Alam Khan after he reviewed the complaints regarding delayed delivery of vehicles to the buyers and difficulties being faced by the carmakers.
During the PAC session, it was revealed that the carmakers have received a huge sum of Rs127 billion from the customers as advance payments against the vehicles.
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The secretary of the Ministry of Industries and Production apprised the committee that the automakers received 20% to 100% of advance payments from the customers for the vehicles.
The secretary added that the manufacturing plant of any of the automobile firms was not fully operational up to 100% and it was mandatory to hand over vehicle to the customer within 60 days after advance payment.
“If an auto company fails to deliver car within 60 days, then it will make the reimbursement of KIBOR plus 3% as penalty. During the last two years, the auto companies had paid Rs1.9 billion to the customers. The annual demand of cars stands at 350,000 in Pakistan, the secretary added.
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The PAC chairman remarked that the automakers were demanding an additional payment of Rs400,000 from the buyers despite receiving full payment.
Noor Alam Khan issued directives to change the name of carmakers to car assemblers besides ordering auto companies to hand over vehicles to the customers within a month who have made 100% of advance payment.
The committee restricted the auto firms to not receive advance payment above 20% for bookings. The companies will be bound to reimburse KIBOR plus 3 per cent within a month to the customers if they failed to hand over vehicle after 20 per cent of advance payment.