Latest news with #MuhammadSabirShaikh
Express Tribune
12-03-2025
- Automotive
- Express Tribune
Passenger car sales rise 44.6%
Listen to article Passenger car sales went up by 44.6% to 67,135 units during the first eight months of the current fiscal year compared to the same period in the previous year due to a significant improvement in buyer sentiment and businesses after the COVID-19 pandemic, new models following the new year, corporate buying, higher prices of used cars, and lower durability of older vehicles, among other factors. According to data released by the Pakistan Automotive Manufacturers Association (PAMA), sales of all vehicles, including two-, three-, and four-wheelers, increased. However, there was a setback in farm tractor sales. Tractors still failed to achieve any major breakthrough or momentum due to significant crop losses faced by small, large, and progressive growers in the country. Sales of jeeps and pickups increased by 69% to 22,503 units. Meanwhile, sales of trucks and buses surged by 96.7% to 2,470 units and by 45% to 435 units, respectively. Additionally, sales of two- and three-wheelers (motorcycles and rickshaws) also skyrocketed by 30% to 962,315 units. However, sales of farm tractors fell by 30% to 21,692 units as growers remain distraught over not receiving fair prices for their crops. The country's overall crop yields continue to decline due to a lack of research and development (R&D) in new seed varieties and unfavourable weather conditions. Most growers are unwilling to cultivate crops due to financial losses and low rates for their agricultural produce. Speaking to The Express Tribune on Tuesday, auto sector analyst and expert Muhammad Sabir Shaikh said there are various reasons behind the rise in car sales, including the introduction of new models by almost all car brands, the new year and corporate sector buying, and a low interest rate of 12%. He also noted that the prices of used cars are currently very high, while concerns about their durability persist. As a result, people prefer new vehicles over used ones. A substantial improvement in buying sentiment has been observed after the COVID-19 pandemic. However, the rupee has not yet strengthened against the US dollar. According to Topline Research official Myesha Sohail, auto sales have increased this year, and the uptrend is expected to continue as new variants enter the market and auto financing recovers amid lower interest rates. Auto sector analyst Mashood Khan said, "Except for the tractor industry, the market uptrend is visible in all vehicles until the upcoming June. The federal budget for 2025-2026 will be crucial in setting new directions. Policymakers must introduce attractive policies to promote the localisation of vehicles and manufacturing units, which will help reduce vehicle prices, allowing middle-class people to purchase cars. People who earn between Rs100,000 and Rs200,000 a month are unable to afford cars and instead turn to motorbikes."
Express Tribune
01-03-2025
- Automotive
- Express Tribune
Dealers reject Sindh's new vehicle registration law
Listen to article Dealers of motor vehicles and their association have urged the Sindh government and the Sindh Excise, Taxation, and Narcotics Control Department to review the newly amended law requiring vehicle registration within a month. They have also demanded a three-month delay in its implementation to allow them time to clear their existing stock. Reacting to the enforcement of the newly amended Section 23 of The Provincial Motor Vehicles Ordinance 1965, the dealers have rejected the amendment, calling it unacceptable. They argued that laws should be made in accordance with practicality, and such rigid regulations could harm both dealers and customers. Under the new law, they said, the government has reduced the registration period from six months to just one month for all motor vehicles, including motorbikes, rickshaws, and cars. Expressing concerns over its sudden implementation, dealers said the law would be difficult to comply with. According to the amended law, "23-A. Penalty in default of registration. (1) If a motor vehicle, imported into the country by any owner or showroom motor dealer, or a motor vehicle manufactured in the country, or invoiced by any authorised showroom dealer or manufacturer, such motor vehicle shall be liable to be registered under section 23, within 30 days from its date of Goods Declaration/Bill of Entry; in case of import, or from the date of invoice in case of local manufactured vehicles. (2) Any vehicle imported or locally manufactured, to be used in any other province, shall be transported through a carrier and shall not (be driven) in the province of Sindh in any case without registration. (3) If an owner or showroom/motor dealer, fails to register such motor vehicle within the specified period mentioned under sub-section (1). he/she shall, besides the registration fee prescribed under the rules, be liable to a penalty mentioned in the table hereunder; provided that if the motor vehicle, whether imported or manufactured in the country, is sold by the owner/showroom/motor dealer who shall be responsible for registration of such motor vehicle, before handing over to the buyers." The penalties for delayed registration include Rs5,000 for motorbikes, Rs10,000 for rickshaws, and Rs10,000 to Rs200,000 for four-wheelers, depending on the delay period, which can range from 30 to 180 days. Motorcycle dealer and auto sector expert Muhammad Sabir Shaikh has demanded that the law be reviewed by June 30 and that all stakeholders be consulted before finalising its implementation. He warned that if enforced without revision, the law would severely impact businesses and the already struggling auto industry. "Businesses are already suffering, and such laws will discourage economic growth. The vehicle registration timeline starts from the day a vehicle leaves the factory, and expecting dealers to sell all their stock within 30 days is unrealistic. Even within six months, not all showroom models get sold," he said. He further suggested that instead of imposing such strict deadlines, the Sindh government should adopt Punjab's system, where dealers can complete the registration process online without bureaucratic hurdles or kickbacks. Karachi Motorcycle Dealers Association Chairman Muhammad Ahsan Gujjar echoed similar concerns. "As law-abiding citizens and dealers, we respect all laws, but we urge the government to defer this amendment for at least three months so dealers can clear their existing vehicle stocks. We only became aware of this law a few days ago, and now we are expected to ensure registration within a month," he said. He explained that a motorcycle typically takes about a week to reach a showroom from the factory, leaving dealers with only about 20 days to sell it or face penalties. Gujjar further highlighted that a motorbike dealer's commission is around Rs2,000 per Chinese-made bike and 2% per Japanese-made bike. However, due to tough market competition, dealers often sell at even lower margins. An official from the Sindh Excise, Taxation, and Narcotics Control Department defended the law, stating that the Sindh Assembly passed the amendment to curb unregistered vehicles and vehicle theft. "The law will assist law enforcement agencies by pressuring vehicle owners and dealers to ensure timely registration," the official said.
