The company that manufactures all makes of Honda for Pakistan is demanding that the consumers pay one percent special excise duty for all bookings made after June 9, 2007, the day the budget was announced. The company has also raised its prices by Rs 1,500 as an increase in freight and insurance expenses, Daily Times learnt from sources in the company. The budget 2007-08 evoked positive reactions from the automobile industry as imports of used vehicles were curtailed to three-year old machines only. Dealers cried farce as imported vehicles were popular among the middle-class buyers and were a good source of income for them. But it was the consumer that was affected the most by the announced budgetary measures. Locally manufactured cars were slapped one percent SED, which was to be applicable from July 1, 2007 and together with 2.5 percent withholding tax was to take effect from September 1, 2007.
Over the past week other auto manufacturers in the country, namely, Indus Motor Company and Pak Suzuki Motor Corporation announced that they would not burden their consumers with one percent SED for cars booked in June. But it isn’t good marketing in any way, as Honda Atlas Cars demands one percent SED from its consumers for car bookings in June. On top of this they are to wait for five to six months for the arrival of their cars.
Sources in the industry state that the company has had excess capacity for the past two years. The company produced 18,240 cars for the year ending March 31 2007 against pervious year’s production of 31,476 cars. Despite this, the company does not jack-up its production but chooses to test the consumers’ patience.
Interestingly, ‘The Vision Statement’ of the company, as published in the annual report for the year ending March 31, claims ‘focusing on satisfaction of customers, shareholders and associates’. It is difficult to see whether such practices by the company would actually satisfy its customers. Though it may satisfy its shareholders and associates. Even the most preliminary course in marketing tells us that loyal customers are a company’s greatest asset.
dailytimes.com.pk
