The Federal Board of Revenue had reduced the depreciation rate from two percent to just one percent on the import of used cars. This decision to make 50 percent reduction in depreciation rate increased the overall rates of duties and taxes on the import of old and used vehicles.
Local industry was not launching new models while the discontinuation of Daihatsu Cuore and Suzuki Alto also gave a chance to small segment imported cars to grab a big market share. Khalid bin Waleed Road and its adjoining streets – the main markets for used cars situated in the heart of Karachi – are filled with newly imported cars with two to six models in each engine category including 660cc, 800cc, 1,000cc, 1,300cc, 1,500cc and 1,800cc.
With the discontinuation of Cuore (800cc) and Alto (1,000cc), there are only two local cars Suzuki Mehran and Cultus in 800cc and 1,000cc categories in production.
However,there are over a dozen imported models of Suzuki, Toyota, Honda, Nissan and Mitsubishi ranging from 660cc to 1,000, which are giving a tough time to the local carmakers.
Despite concerns about availability of parts and vehicle maintenance, a continuous surge in used car sales in the country suggests that customers prefer Japan-assembled cars to local versions.
The Customs General Order – a recent order from the Federal Board of Revenue (FBR) which cut depreciation limit on imported cars – would change the situation a little bit as it could hurt sales of imported cars.
Local industry was not launching new models while the discontinuation of Daihatsu Cuore and Suzuki Alto also gave a chance to small segment imported cars to grab a big market share. Khalid bin Waleed Road and its adjoining streets – the main markets for used cars situated in the heart of Karachi – are filled with newly imported cars with two to six models in each engine category including 660cc, 800cc, 1,000cc, 1,300cc, 1,500cc and 1,800cc.
With the discontinuation of Cuore (800cc) and Alto (1,000cc), there are only two local cars Suzuki Mehran and Cultus in 800cc and 1,000cc categories in production.
However,there are over a dozen imported models of Suzuki, Toyota, Honda, Nissan and Mitsubishi ranging from 660cc to 1,000, which are giving a tough time to the local carmakers.
Despite concerns about availability of parts and vehicle maintenance, a continuous surge in used car sales in the country suggests that customers prefer Japan-assembled cars to local versions.
The Customs General Order – a recent order from the Federal Board of Revenue (FBR) which cut depreciation limit on imported cars – would change the situation a little bit as it could hurt sales of imported cars.
