Non-filer ban dented PSMC production, sales by 32pc: official

ISLAMABAD: Pakistan Suzuki Motor Company (PSMC) has suffered production and sales losses to the tune of 32 percent, owing to the curbs on non-filers from buying new cars, a move that proved to be a bump in the road for the auto sector on the whole, an official said on Tuesday.

“The non-filers are allowed to buy other things, but why [they are not permitted to purchase] only cars. The government, instead of barring them from buying new vehicles, should increase tax rate on them” the official said while talking to The News.

He said it would add to the government’s revenues, while not affecting the economic activities in the forward and backward sectors of the automotive industry.

“We are hearing that the government is abolishing this conditionality in the supplementary finance bill [to be announced today (Wednesday)], but we have been not clear, nor we have been given a green-signal by the government so far, but we hope for the best,” the PSMC official said.

To a question, he said yes Pak Suzuki had suffered and was suffering a lot. “As our cars are masses’ cars and people of our car segment are not familiar/aware about and with filer/non-filer matter,” the official said.

He added that since the ban, they have suffered losses around 32 percent of production and sales. “If this ban/restriction continues then this percentage will increase and it is not only our loss but also government’s as it will get less revenue,” he added.

He further said allied industries were also suffering and especially local vendors were the most affected because of this ban.

“If the things will be in losses then employment, job opportunities and investments will be disturbed. So, we urge the government that ban is not a solution and the non-filer should be allowed to purchased vehicles for the business to flourish,” the carmaker’s spokesman said.

When asked if the discontinuation of Mehran car production would have any impact on the vendors and the company itself, he said in the past, it [Mehran] was a much demanded small car in the market, but its demand gradually reduced, so the company decided to stop its production in December 2017.

“However, it would have no negative impact as the new model that is going to touch the road in next two months, he said.

According to Pakistan Auto Parts Manufacturers Association (PAMA) latest figures, Mehran production reduced to 22,298 units in July-December 2018/19 over same period of last year when its production was 23,489 units. In 2017, Mehran sale was 42,000 units.

It is worth mentioning that Mehran had replaced Suzuki FX in 1988, and since then, it would be the first time that the company is bringing a new small car [Alto-660cc].

The PSMCL official informed The News that new Suzuki Alto (660cc) was all set to go into production by end of March or mid-April 2019.

“A new manufacturing line at a cost of around Rs17 billion has been added to the existing plant with all aligned facilities and it is now ready to produce the new model,” he said adding, the price of the new car would be up to Rs0.9 million, which would be announced in coming months.