Proton is steadily extending its global presence, with Pakistan being its most important export market. According to Paul Tan, a famous Malaysian news site, the manufacturer exported 794 units to foreign markets in March 2021, with 690 of those going to Pakistan.
In March 2022, Proton sold a total of 13,028 units (in Malaysia and other countries), a 41 percent increase over the previous month, with the Saga being the best-selling model with 6,422 units. The X70 SUV was the second best seller, with 2,320 units sold in a month.
Proton has a huge market share in Malaysia, but it isn’t quite as successful in Pakistan. Slow sales, delayed local manufacture, extended delivery periods, and a resulting drop in demand are some of the causes behind this.
Proton only sold 1,233 cars in Pakistan in 2021, according to data compiled by AutoJournal.pk. Only 181 of these units were locally produced, with 1,052 being CBUs.
Following the de-intensification of COVID19 limitations and the resulting ease of commerce with Malaysia, Al-Haj Automotive recently stated that it is scaling up local manufacture of Proton automobiles.
According to market sources, Proton now has a backlog of over 1,000 reservations, resulting in a delivery delay of up to a year for new reservations. Previous customers have been enraged by these faults, and new purchasers have been turned off by Proton.
What is Causing Pakistan’s Automobile Costs to Rise?
April 1, 2022 / By Zunair Tahir / Automotive News
The government instructed an automotive monitoring committee to conduct a forensic study of recent price spikes in various car models across the board on Thursday.
Members of the committee were requested to choose neutral professional experts for the forensic study during a high-level meeting chaired by Federal Secretary for Industries and Production Jawad Malik, and the report should be presented within two weeks.
The ministry has directed a monitoring group to conduct a comprehensive investigation of the recent increase in automobile prices.
Industry participants tell the ministry about the reasons for late deliveries and manufacturing capacity.
The car industry has been asked to submit a localization strategy by the federal secretary.
The Hyundai Tucson Also Sees A Significant Price Increase
March 28, 2022 / By Zunair Tahir / Automotive News
The Hyundai Tucson also sees a significant price increase. Hyundai Nishat Motors Private Limited (HNMPL) has revised the prices of the Hyundai Tucson, joining the price hike bandwagon. In barely over two months, the firm has raised its prices for the second time.
The following are the pricing for both Hyundai Tucson models, which are effective immediately:
Old Price (PKR)
Revised Price (PKR)
Tucson GLS Sport FWD
Tucson Ultimate AWD
CALL FOR ON ROAD PRICE
HNMPL, like its competitors, blamed the increase on increased raw material costs, freight charges, the depreciation of the local currency, and other logistical issues.
Unlike other manufacturers, however, HNMPL has only applied the increased costs to bookings made after the price hike was announced. Those who booked before March 25, 2022, will be charged the old rate.
Hyundai, on the other hand, has merely upped the price of the Tucson. It’s worth mentioning that the SUV was HNMPL’s best-selling car in February 2022, selling approximately 800 units in the month.
President Empowers Suzuki Customers to Get a Refund Of Up to 12% Of Their Sales Tax Overpayment
March 17, 2022 / By Zunair Tahir / Automotive News Pakistan
President Arif Alvi has supported the Federal Tax Ombudsman’s (FTO) decision to refund more than 12.5 percent of sales tax collected from Suzuki car customers.
Pak Suzuki was sued under Section 10(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance) for collecting 17 percent sales tax on 998cc automobiles in August 2021, despite the fact that the real rate at the time was 12.5 percent. As a result, taxpayers were compelled to pay more than was truly owed.
The judgement was confirmed by Pakistan’s President, who dismissed FBR’s appeals against the return suggestion. FTO Dr Asif Mahmood Jah, speaking during a press conference, said:
“The President’s directive will assist customers around the country who paid an excessive amount of Sales Tax from Suzuki car purchasers.”
The complainants ordered 998cc automobiles in advance of June 2021, paying a total of Rs 2.145 million in advance, with an estimated delivery date of July 2021. Meanwhile, by the Finance Act of 2021, the rate of Sales Tax on such automobiles was reduced from 17 percent to 12.5 percent, and the FED charged at 2.5 percent was abolished entirely, with effect from July 1, 2021. Furthermore, the word “time of supply” was changed from “time of sale” to “time of delivery” in Section 2(44) of the Sales Tax Act of 1990.
The automobiles were delivered to the complainants together with an invoice for Rs 2.069 million, which reflected the revised rate in effect after July 2021, rather than the rate in effect when the car was booked in June 2021. However, the firm assessed Sales Tax on the previous rates rather than the invoice date “the time of sale” and refused to refund the difference, denying Middle-Income Complainants the full benefit of the lower tax burden. The complaint also contacted FBR through email on its hotline, asking a reimbursement of the difference in sales tax.
The FBR responded by sending an email stating that sales tax on automobiles up to 1000cc had been decreased to 12.5 percent. However, the FBR did not fix the matter by arranging for a reimbursement of the sales tax difference. According to the FBR:
“At the time of reserving the car in June 2021 and its delivery in August 2021, there was a lack of clarity on the term of “time of supply.” The appropriate period for establishing the rate of taxes was when payment was received by the provider, according to the definition in June 2021, when Sales Tax was 17 percent and FED was 2.5 percent. However, in the budget 2022-2023, both the definition and the applicable tax rates were changed, and now “supply of goods, other than under hire purchase agreement, means the time at which the goods are delivered or made available to the recipient of the supply” means “the time at which the goods are delivered or made available to the recipient of the supply.”
Despite the fact that the act’s amendments were meant to assist taxpayers, the objections were dismissed. The Federal Tax Ombudsman has issued instructions to all advisors to decide all similar cases in accordance with a decision by the President of Pakistan, and FTO hopes that the Federal Bureau of Revenue will ensure prompt compliance with the President’s directives, as the decision has a far-reaching impact by providing relief to not only the complaints but many others who may not have so far opted for such relief, FTO added.
In Pakistan, Honda’s 11th-Generation Civic 2022 Makes Its Debut
March 3, 2022 / By Zunair Tahir / News Pakistan
Honda Atlas Cars Limited (HACL) has officially released the all-new Civic in Pakistan, making the small sedan category in Pakistan significantly more intriguing.
The new Civic was also unveiled in a digital launch, presented by Aamir H. Shirazi, President of Atlas Group, Hironobu Yoshimura, CEO of HACL, and Aamir Nazir, General Manager Sales and Marketing at HACL, who informed the audience about the vehicle’s numerous features.
Unlike the 6th generation Honda City, which was released last year, the 11th-generation Civic is the most recent model on the market, and it outperforms its competitors, such as the Toyota Corolla and Hyundai, in terms of performance and amenities. Even if it comes at a hefty price.
When it comes to style, the new Honda Civic is more conservative than its predecessor, which is a good thing.
With a large bumper grille in the middle and a streamlined primary grille between the headlights, the front end appears dignified but intimidating. The bright Daytime Running Lights (DRLs) on the newly styled headlights contribute to the intimidating appearance. The overall refinement is enhanced by the lengthened and straightened-out bonnet design.
Along the length of the vehicle, the side profile exhibits clean and basic lines. The 2017 Civic comes with 17-inch black alloy rims (16-inch in basic and mid-level models) in Pakistan, which are more appealing than previous generations.
The ‘European design influence’ is most visible towards the back end. The car’s angular and sharp taillights, straightened-out boot lid, high-up bumper reflectors, center trim down below, and dual oval exhaust tips (in the top grade only) give it a sporty appeal.
Interior Design :
The inside of the 11th-generation Civic has been completely redesigned by Honda. The inside has a luxury vibe thanks to a simple dashboard design, silver trim elements throughout the cabin, and ambient lighting. The premium variant’s inside is black with red stitching, while the base and mid-level models’ interiors are dark grey.
It sports a huge 9-inch infotainment screen with Apple Carplay and Android Auto on the top. The lowest models have soft fabric upholstery, while the premium models have leather upholstery.
The 2018 Honda Civic will be available in three different models. A turbocharged 1.5-liter four-cylinder petrol engine with 127 horsepower (hp) and 180 Newton-meters (Nm) of torque will power the base and mid-level models, which will be coupled to an M-CVT automatic gearbox.
The top-of-the-line model also has a 1.5-liter turbocharged engine with 176 horsepower and 220 Nm of torque, as well as an LL-CVT automatic transmission.
It has McPherson struts in the front and multi-link coil springs in the rear. It also has disc brakes on all four wheels, as well as an Anti-lock Braking System (ABS), Electronic Brakeforce Distribution (EBD), and Brake Assist (BA) system for good stopping power.
According to auto-data.net, the new Civic has a worldwide fuel economy of 14 liters per kilometer; however, values in Pakistan are likely to differ. The new Civic will also be the quickest, most thrilling, and capable vehicle in the country, with a power-to-weight ratio (PWR) of roughly 0.35 hp/kg.
Adaptive Cruise Control (Honda Sensing)
Rain Sensing Vipers (Top Variant)
Multiple Drive Modes (Top Variant)
Smart Infotainment System
Advanced Gauge Cluster with Digital Information Display
Automatic Headlights (Top Variant)
Electronically Folding Mirror
12 Volt Socket
Automatic Climate Control
Immobilizer System and Burglar Alarm
Central Power Door Locks and Walk Away Doorlocks
Steering Wheel Multimedia-Control Switches
ISO Fix Child Seat Anchors
Adjustable Steering Wheel
Electronic Parking Brake
Semi-Digital Gauge Cluster
Lane Keep Assist (Honda Sensing)
Heated Door Mirrors (Top Variant)
Autonomous Braking (Honda Sensing)
Lane Departure Warning (Honda Sensing)
Lead Car Departure Alert (Honda Sensing)
Auto-Dimming Mirror (Top Variant)
Vehicle Stability Control and Traction Control
Sunroof (Mid and Top-Variant)
Weight and Dimensions:
The Civic is somewhat bigger than its competitors, despite being a C-Segment small car. What is known about its dimensions is as follows:
The budget for 2021-22 has been revealed, revealing a number of anticipated policy changes. There has been speculation regarding the changes that are expected in the new auto policy, since it has been widely reported that local vehicle prices may finally stabilize.
The government has announced that the Federal Excise Duty (FED) on domestically built cars with an engine displacement of 850cc or less has been eliminated. Prior to the development, the duty rate was 2.5 percent. Federal Finance Minister Shaukat Tareen also stated during the session that the sales tax on the aforementioned sector of automobiles has been reduced from 17 percent to 12.5 percent, resulting in a 4.5 percent reduction in tax rates.
Under these 03 programmed, old and secondhand Asian-made vehicles can be imported against payment of the following amounts:
Vehicles of Asian Makes meant for transportation of persons
Duty and Taxes in US$ or equivalent amount in Pak
Upto 800 cc
801cc to 1000cc
From 1001 cc to 1300cc
From 1301cc to 1500cc
From 1501cc to 1600cc
From 1601cc to 1800cc (Excluding Jeeps)
According to reports, HM Shehzad, Chairman of the All Pakistan Motor Dealers Association (APDMA), recently recommended that the government make modifications to the new car policy that would be adopted when the 2021-22 budget is presented.
Electric car imports would be free from VAT, but domestically made electric vehicles will be subject to a 1% sales tax. The government would also levy a “on money” tax on automobiles that are sold without being registered. “On money” or premium refers to a procedure in which anxious customers with extra funds pay a premium to vehicle dealers in exchange for immediate delivery rather than waiting months.
Tarin proposed measures for electric vehicles during his budget address, saying that the government was supporting the usage and manufacture of electric vehicles to reduce reliance on gasoline, offer inexpensive transportation to the general people, and minimise environmental effect. To achieve these aims, substantial tax relief measures for electric cars were proposed, including a tax exemption on the import of fully knocked down (CKD) kits for local electric vehicle production.
In addition, the sales tax on domestically made electric vehicles was reduced from 17 percent to 1 percent, while the value added tax on imported electric vehicles was eliminated. Electric cars will also be exempt from federal excise taxes. Hanif emphasized that tax breaks and exemptions for electric cars will help to create a more fuel-efficient and environmentally friendly economy.