Industry considering producing LPG cars

Option being studied after ban on import of CNG kits and cylinders.

KARACHI: Following a ban on import of compressed natural gas (CNG) kits and cylinders and restrictions on production of new CNG-fitted cars, the automobile manufacturers are considering introducing liquefied petroleum gas (LPG) kits in the vehicles.

Indus Motor Company Senior General Manager Sales and Marketing Ali Asghar Jamali told the media on Monday that the company had started discussing this option in the wake of natural gas shortage in the country.

Talking about the increase in automobile prices, he said this could be controlled through more use of local parts. At present, Indus uses local parts having 30 per cent value of the total.

Jamali said the permission for import of used cars had reduced the demand for small cars of the company. Over 27,000 used cars were imported in the last seven months and the figure was expected to reach 40,000 by the end of fiscal year in June 2012.

However, he hoped that the sales target for 2012 would be achieved easily. The company has fixed the target at 55,000 vehicles.

“Sales are going on as projected and the company has all the cars in stock. Delivery is also being made as quickly as possible,” he said.

Corporate Communications Manager Babar Saleem said the proposed negative list in trade with India had not been provided to the auto industry. He said the industry opposed import of completely built units (CBU) from India, however, completely knocked down (CKD) units could be imported if it was profitable.

He said the auto industry was also facing problems like other industries because of gas and electricity crisis and Indus was spending an additional Rs20 million per month on diesel generators.

Published in The Express Tribune, February 21^st, 2012.