DOHA: Automobile agents yesterday poked fun at the Ministry of Economy and Commerce and said the rule it has talked about which allows non-agents to import new cars for sale in the local market, is nothing new.
It is a 13-year-old rule which took effect via a law passed in 2002, so why talk about it now, several automobile agencies asked.
The rule is applicable to all car brands and the local market is open to all non-agents with valid licence to import new cars from sources other than the manufacturer, said exclusive agents, Al Sharq reports.
Only exclusive agents can access cars for sale directly from the manufacturer, according to the 2002 law. But only a few cars are imported by non-agents compared to those brought in by agents because of the price factor, according to exclusive agencies.
Cars imported by non-agents work out to be expensive as their original purchase price would be higher compared to the price paid by an exclusive agent.
Secondly, the cost of shipping would be more for non-agents due to smaller consignments. Exclusive agents, however, import cars in bulk so transport charges work out lower.
So, when non-agents have to pay more to get a car for sale in Qatar, they will have price it higher to recover the cost.
This means they cannot compete with exclusive agents.
Another important factor is that agents can and do launch sale promotions regularly and make offers like free insurance and servicing and replacement of spare parts. Non-agents cannot afford such promotions.
There is also the issue of providing warranty and servicing — conditions that are difficult for non-agents to comply with. And this means they would be found on the wrong side of the law and would face punishment for violating rules.
Agents can and do comply with these conditions. These are some of the factors due to which non-agents are not able to offer new cars for sale in big quantities as agents are able to, said the agencies.
The ministry issued a statement on Wednesday, trying to clear confusion in the local market about import rules for new cars.
The ministry said it was a 2002 law that allows non-agents to import new cars of all brands for sale in the local market from sources other than the manufacturer.
It said the idea behind having such legislation is to ensure fair competition in the local automobile market so that prices come down and quality improves for the benefit of the end user.
The Peninsula
