The import of used automobiles has considerably declined in the first quarter. Market sources say the downtrend is due to uncertain policies, a glut of imported used automobiles and a saturated auto market.
“The number of imported used and reconditioned cars declined to 9,000 in the first quarter of 2006-07 against 15,000 in the corresponding period last year,” an official said.
The government wanted to continue imports of used cars as the gap in demand and supply in auto sector has yet to be bridged, he said.
According to a market survey, used vehicle importers are suffering huge losses due to low demand coupled with and excess in supply.
Some used cars’ importers have suffered with funds getting blocked, market sources said.
Dealer Shafqat Rasool claimed a local importer had imported 400 used cars. “He now, however, is facing a problem in selling the vehicles.”
Rasool expressed hope that the situation would get better in next few months. The huge import of used cars has not affected demand for locally manufactured automobiles.
Meanwhile, a senior Ministry of Industries official said permission for imports of used cars had been given because of the inconvenience caused to new automobile buyers.
“Because of prolonged waiting periods and illegal premiums on new automobiles, people were suffering. In a bid to bridge the gap in demand and supply, the government has allowed the import of used cars,” he said.
He, however, admitted that imported cars were not up to mark and a restriction had to be imposed on import of cars more than five years old. “The condition was imposed with a view to maintaining the quality of imported cars,” he said