Car importers count Tk 7,000cr losses for political turmoil
Car importers have incurred losses of around Tk 7,000 crore over the last three months due to the political turmoil, which knocked the sector's supply chain.
As of March 24, some 7,828 cars were stranded at the ports, as importers shy away from taking delivery fearing vandalism on the way to their final destinations.
“Most of us are afraid of violence on the highway for the political unrest. So, taking delivery of cars from ports has become slow,” said Abdul Hamid Sharif, president of Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida).
Of the cars that are stranded, 4,797 are stuck at Mongla port, the seaport that mainly handles reconditioned cars imported from Japan, while the rest are at Chittagong port, Sharif said at a press conference in Dhaka yesterday.
Each day, importers have to pay Tk 496 for each car as overstaying fine to port authorities, Sharif said.
Importers now usually take delivery of their cars on weekends, which have remained more or less violence-free so far.
Apart from forcing importers to count overstaying fees, the unrest has also taken a toll on the sales of cars, said Mahbubul Haq Chowdhury, secretary general of the association.
“Our sales have nosedived for the turmoil. We cannot keep our showrooms open for the risk of attacks,” he said.
Some 5,655 cars were imported between December 2014 and March 25 this year, but almost all the vehicles have remained unsold due to volatile political environment, Chowdhury said.
Besides, people do not want to buy cars when the country is going through such turbulence, he added.
The importers though still have to bear huge amounts of bank interest.
Car importers and traders have to pay around Tk 2,500 crore to banks as principal and interest, according to the Barvida secretary general.
The association, therefore, urged the government to waive the interest accrued in the last three months.
It also demanded that the government refrain from auctioning off the cars stranded at the ports over the last three months.
Barvida also urged the shipping minister to waive all port fines for cars.
The reconditioned car sector enjoyed wonderful sales last year: dealers sold 16,400 units of cars in 2014, up 69 percent year-on-year.
Barvida has 600 members, of which 260 are importers and the rest are dealers.
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