Local industry appeals for ban on car imports

Published: August 1, 2012
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WORKFORCE: 2m
is the number of skilled and
unskilled workers that the
auto sector supports either
directly or indirectly.

WORKFORCE: 2m is the number of skilled and unskilled workers that the auto sector supports either directly or indirectly.

KARACHI: Local automobile parts suppliers have launched a fresh drive against used car imports saying that their influx is negatively affecting the livelihood of workers and appealed for imposition of a ban as the demand for locally manufactured cars declined in recent weeks.

Pakistan Association of Automotive Parts Accessories Manufacturers (Paapam) Chairman Syed Nabeel Hashmi told The Express Tribune that concerns of auto parts manufacturers are indisputable as lagging demand for local cars will eventually have a negative impact on the income of domestic workforce manufacturing parts for local cars.

The decline in production levels of local carmakers has panicked auto part suppliers who fear that the slowdown will eventually hit their businesses and their revenues will dip considerably. However according to data from Pakistan Automotive Manufacturers Association June 2012 total production stood at 15,816 units, up 12% from last month’s 14,107 units.

Indus Motor Company (IMC) shutdown its plant for four days in July and plans to keep it offline for another six days in August to offset the gap in slow demand in the market, company officials informed. Similarly, Suzuki is also cutting down its weekly production days due to sluggish demand.

The concerns of the suppliers are mounting every passing week as local automotive manufacturers resorting to less production days a week due to the lower demand and enough stock of new cars at the showrooms.

Earlier, Paapam released a press statement which claimed that the import of used cars from Japan could be hazardous due to the nuclear radiations caused by the last year’s incidents of nuclear reactors in Fukushima, Japan. Moreover, the governments of Pakistan and Japan should issue certificates to verify if cars imported from Japan are not affected by nuclear radiations.

“Local industry provides jobs to our people and I will continue to support them,” Hashmi replied, when asked if the nuclear radiation idea is propaganda to panic buyers of used cars in the country.

Pakistan Atomic Energy Commission could certify whether Japanese cars are non-hazardous or not, Hashmi said on a question.

“Federal government has failed to pay heed to all the warnings about controlling the import of used cars. In addition to this flawed policy on used cars, government has restricted the sales of local carmakers by putting up a ban on the import of CNG kits and cylinders that has hit local carmakers,” he said, elaborating on the causes of the present grim situation.

Furthermore, without ensuring the availability of Euro-2 compliance diesel in the market, the government has legislated that Euro-2 vehicles will be launched from July 1, 2012 thereby increasing the prices of Euro-2 complaint cars.

Due to these flawed government policies, the industrial production has decelerated and will result in lay off of its work force, which is currently at a level exceeding 2 million skilled and unskilled workers, employed directly and indirectly by the industry.

The Paapam Vice Chairman Munir Bana appealed to the government that it should take immediate remedial actions by banning import of used vehicles (or at least bring the age limit down from 5 to 3 years) in order to bring stability to the auto industrial sector.

Published in The Express Tribune, August 1st, 2012.

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Reader Comments (12)

  • resilient
    Aug 1, 2012 - 2:19AM

    look whos talking……..??? :-) after plundering their customers for years, now are concerned about economy, livelihoods.. bla bla bla……?

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  • Saad
    Aug 1, 2012 - 7:38AM

    Start making better quality cars to live up to the brand names! Where else in the world do you find a Toyota Corolla “XLi” without power windows for 1.4 million ? Make the cars better, cheaper……. well within the reach of an ordinary man….. then talk about all this….

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  • DevilHunterX
    Aug 1, 2012 - 9:01AM

    And yet, seat belts, ABS and airbags are not standard in all cars built / assembled in Pakistan.

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  • Saud Usmani
    Aug 1, 2012 - 9:45AM

    Shame on these blood sucking (of the poor) industrialists… Please Anyone read and check Financial Statements of these car manufacturers and Suppliers… profits (after taxation) are sky rocketing! They are making money in billions. Instead of banning imported cars (used) first there should be cost audit of all the local manufacturers? The margin they are getting? Real Cost and Profit they are making on each unit(car).

    As a consumer we appreciate import of used cars; in this way we are getting 100 times better cars quality wise in reasonable prices.

    One suggestion Govt should seriously think on slashing down import duties on Hybrid cars. it will help us in many ways, less oil import bill, less CNG usage, more Gas available for industries and power sector, less emissions healthy envoirnment….. lets think.

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  • Aug 1, 2012 - 11:21AM

    Amazing monopoly is threatened by second hand car imports !!!!!!!!!!!

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  • Asif khokher
    Aug 1, 2012 - 11:38AM

    Every time new Prime Minister takes over, a tussle starts between these car manufacturers and new PM. This is done deliberately to get kick-backs from these car manufacturers. Now palm of the new PM will be greased and then a policy declaration will arrive soon that we will protect local industry. Disgusting, highly terrible.
    Look at the sky rocketing prices of these cars and poor quality. Are these cars being certified by any international agency for its safety, quality etc. Every time these manufacturers raise hue and cry that it is matter of workers engaged. How many workers are engaged in this industry. 4000 or 5000, …thats it, at the cost of many million users. Close this useless industry and open the policy of importing new and furnished cars.

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  • the sUltan!
    Aug 1, 2012 - 12:21PM

    This would surely happen…… why can’t they make cars of a certain standard…. the seat-belts, disc brakes, srs premium airbags… these r some of the things…. also those so called high fy cars are not affordable for an ordinary man!

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  • faraz
    Aug 1, 2012 - 12:33PM

    We are deprived of the best of global auto industry due to this mafia of three local auto-makers! Ask them to raise the quality or shutdown the plants!

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  • Aug 1, 2012 - 4:30PM

    After feeding on bank interests instead of investing back they are complaining.

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  • resilient
    Aug 1, 2012 - 10:51PM

    @Asif khokher:
    Well said.. absolutely perfect.

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  • nome
    Aug 2, 2012 - 1:28AM

    the local car producers like suzuki want the people to be slaves to their out-dated unsafe over priced garbage

    importing a late model car with high safety features like mulitple airbags and abs brakes gives them much pain

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  • Aug 2, 2012 - 8:04PM

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