According to the report, the biggest beneficiary of this discount will be Pak Suzuki Motor Company (PSMCL) as its Bolan and 660cc Alto vehicles are the best sellers.
In the financial year 2021, the sales of Bolan increased by 65% while the sales of Alto increased by 25% while in the financial year 8,099 and 36,504 units of both the vehicles were sold respectively.
However, stakeholders are reluctant to give a clear response to the announced budget measures for the auto sector.
Shafiq Ahmed Sheikh, spokesperson of PCMCL, said, "These are the best incentives and benefits for the consumers of the auto sector. We appreciate the government for this."
Mashhood Ali Khan, former chairman of PAAPAM, said that tax and duty exemption on cars up to 850 cc would improve their demand and besides utilizing their capabilities, employment in the auto sector would also increase.
He said the government and the SBP should reduce the interest rate on auto financing for cars up to 850 cc from 7 per cent to 5 per cent to further benefit consumers.
Ali Asghar Jamali, Chairman, PAMA and Chief Executive Officer (CEO), Indus Motor Company, said, “First let me understand the budget, my team will brief me on the budget on Monday and only then will I respond. I can give.
Topline securities analyst Shankar Talreja estimates that the price of Suzuki Bolan and 660cc Alto will be reduced by up to Rs 125,000 after the FED exemption and 4.5 per cent reduction in GST.
APMDA chairman HM Shehzad said the government should have given concessions on the import of used cars as well as locally manufactured 850cc cars.
It may be recalled that in the eleven months of the financial year 2021, the total sales of cars had increased by 56.6% and compared to 89,130 units of the previous financial year, 139,613 units were sold in the current financial year due to reduction in interest rates Which attracted buyers despite rising prices and delayed delivery.
