Pakistan

‘Ban on used car imports should continue’

Kashif Hussain April 20, 2010

KARACHI: Local car assemblers have recommended maintaining restriction on import of used cars, which are more than three years old for the next budget. Officials from the industry on Tuesday said that suggestions for changes in the policy regarding the local auto industry for the coming budget have been sent to the government.

They suggested that a soft policy for used cars would increase pressure on the local auto industry. They further asked not to impose heavy duty on spare parts. Localisation in auto industry, transfer of technology and expansion would affect new investment and the government would have to suffer the reduction in revenue and unemployment issues. Car assemblers have urged the government to create new employment opportunities and devise a sound framework for development of auto industry.

According to local assemblers, economic conditions have improved in comparison to 2007- 08 and 2008-09 but inflation and devaluation of the rupee is increasing the cost of manufacturing. On the other hand the power crisis is disturbing supply of spare parts and delaying car delivery to end consumers.

COMMENTS (2)

A KHAN | 14 years ago | Reply The local car manufacturers have made a fortune by selling low quality & old technology products to the ignorant Pakistani consumer. Just compare a locally assembled Corolla or a Civic with one in UAE or Japan. There is world of a difference in the quality & technology provided by the Japanese assembled cars. Stupid & be-fooled Pakistani consumer is paying much more for much inferior quality. There is only one way these local assemblers will enhance their product and that is through tough competition by allowing 5-7 years old foreign assembled cars to be imported, otherwise just keep complaining about the latest model local Corolla you have bought.

Nadir El Edroos | 14 years ago | Reply Local car manufacturers have enjoyed over two decades of protectionism in one form of the other. Given the qualitative shortcomings of their products, the unjustifiable prices and waiting lists the hold of the industry over government policy cannot continue. Consumer interests must be held paramount and competition encouraged. The industry has shown little interest in enhancing deletion in their production chain. Given the scarcity of energy resources investments in more efficient engine types in vehicles is an urgent necessity. Pakistani manufacturers remain years behind their compatriots. There is no economic rationale to support their continued protection.

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