Inquiry into automakers’ bad practices hits roadblock

An inquiry by the Competition Commission of Pakistan (CCP) into consumer exploitation by the automobile sector regarding premium payments (on-money), delayed deliveries, increased car prices after booking, etc has come to a standstill. Sources in the commission told Dawn that the investigations have been hindered by a court order and non-cooperation of Honda Atlas Cars (Pakistan) Ltd, as the company has not responded to the request for information since November 2018. From November 2018 to November 2022, the CCP wrote six letters to Honda Atlas Cars seeking information under the law but the company failed to fully cooperate with the commission. However, the company filed a writ petition in the Lahore High Court (LHC) and obtained a stay order in January this year. The LHC permitted CCP to proceed with the inquiry restraining it from passing a final order but Honda Atlas has refused to provide further information to the commission. The CCP initiated the inquiry after reports of numerous consumer complaints through the PM Citizen Portal and it was noticed that car manufacturers – Honda, Toyota and Suzuki – increased prices of booked vehicles.