Car companies collected over Rs. 217 billion as advance reservations.
This year, Pakistan’s automakers have received around Rs. 217 billion in advance payments from clients, with Toyota Indus Motors Company (IMC) leading the pack with Rs. 112 billion.
These figures were disclosed by the Secretary of the Ministry of Industries and Production before the Public Accounts Committee (PAC) hearing, which was presided over by MNA Noor Alam Khan.
The secretary said, “Toyota is followed by Pak Suzuki Motor Company (PSMC) at Rs. 41.66 billion and Honda Atlas Cars Limited (HACL) at Rs. 23 billion.
He clarified that despite the fact that their production facilities are not completely operating, they received 20 to 100% of the cost of the car as reservations from clients.
He added that businesses are required to provide vehicles within 60 days of placing an order, and that Toyota is only able to produce 5,600 vehicles annually due to its partially working plant.
Car companies collected over RS. 217 billion as advance reservations
A corporation must pay KIBOR plus a 3 percent late delivery penalty if it fails to deliver the car within the specified window of time. In this regard, the secretary disclosed that over the past two years, the vehicle businesses have compensated customers more than Rs. 1.9 billion.
