Used cars import to devour Pakistani foreign exchange

[Lankan Ranger]

Used cars import to devour Pakistani foreign exchange

The relaxation announced by the Federal Government in import policy of used cars will not only put an additional burden on the country’s import bill, but also to devour preciousforeign exchange of the country.

The decision to allow reconditioned luxury automobiles up to five years old will be misused by elite class at the cost of the foreign exchange reserves and revenues in terms of taxes and duties.

Giving depreciation facility on the imports of luxury items means to encourage imports of luxury cars, when there is not duty on it.

Sources told The Nation (Pakistan) that a strong influential lobby of ruling elite is busy conniving with some officials to mislead the Govt and have almost managed to convince the Prime Minister that allowing used cars imports against auto industry development programme (AIDP) will benefit the consumer giving them choice and bringing the prices of locally made cars down.

The decision is not conducive even the time when government campaigning for RGST and allow luxury vehicles for influential class particularly parliamentarians after waiving taxes, sources said.

They demanded of the Government to impose ban on the imports of luxury automobiles across the board instead proving depreciation facility and age relaxation. It is pertinent to mention here that the Economic Coordination Committee is likely to discuss the import policy of luxury cars in its next meeting subsequently it has revised the age-limit of usedcars.

The Government has recently allowed up to five years old reconditioned cars aimed at creating manufacturers competition in the local markets to reduce the dominance of local assemblers.

According to the sources, the ruling government seems active to benefits influential people as it gradually phased out duties on the luxury cars and now looking for relaxing its age limits in its parallel policy of car imports.

The Island

 

[Rank]

local market cars like Alto mehran etc not worth.. most pathetic quality cars made by any country...

Car like Mehran Also Cultus without powersteerring power window non ABS etc cost you 7-10 lac wth

imported cars are much muhc much better thn pakistan's local cars..

 

[pak-marine]

this releif wil drop the local market rates , prices are insane and quality real rubbish. Local manufacturers are making huge profit but they are not willing to drop prices with this step it is definatly going to help people? does any one know if this is implemented yet ?

 

[Rank]

prices are still high... it will help when govt will reduce Duty % thn it will defintly pressurize local market to reduce price otherwise just 5 years old car open but duty remains same.

Musharaf time was much better in this field. 10 years old cars was opened and less duty thats why so many BMW'z Mercedes, Ferrariz, Bentley, Rollsroyce, Toyota Vitz, Thundra, Caddilac Esclades, H2s, etc imported in huge amount especially BM and Mercs and local market not dare to increase prices of such JUNK cars like ALTO, CULTUS, local COROLLA, MEHRAN etc

Unfortuntly when Musharaft govt was finished Zardari on seat and again local market (khoob rishwat) to this Mr 10% and stop 10 years old car import also TR (Closed) and duty was also increased. Thats why local market earned heavy profit in past 2 years and now when govt just open 5 years old car from 3 years old (previous). These local market again barking. But still no impact till govt will not reduce Duty.

 

[Ghostwhowalks]

by allowing this, the Govt. is effectively going to kill whatever little domestic car industry that Pakistan currently has as well. People will prefer used imports to locally built cars, percieving them to be better value, and this will lead to a viscious cycle wherein the local guys would have no incentive to invest in improving product quality and features. In about a decade,the Pakistan domestic car industry will cease to exist. this will have a direct impact on the industrial base o fthe nation as well as unemployment, which is bound to increase further.

Instead of doing htis, the Govt should have incentivised the local manufacturers with a carrot and stick policy. get in emission norms, that will force the manufacturers to upgrade engine tech., get safety norms, thereby forcing them to incorporate features like ABS and airbags etc. this will also increase the skill sets of local OEMs since to keep costs low, the manufacturers will have to procure locally.

it may sound like a cliche, but for inspiration, just look at India and South Korea. S. Korea is about a decade ahead of the Indian car industry and the Indian car industry is about half a decade ahead interms of vendor base and manufacturing tech compared to the Chinese car industry.

Both the Governments imposed prohibitive taxes on imports and incentivised the local manufacturers to invest in tech, and today the Koreans are world beaters and the Indians are getting there as well. In two wheelers, esp small capacity two wheelers, the Indians are world leaders already. All the world majors in car manufacutring are making a beeline for India to take advatage of low cost manufacturing that India has achieved in cars without compromising on quality. and NO, this is not about low cost labour (which is not so low cost anymore, in fact) but about innovations in processes and technology

 

[somebozo]

But we need better cars..we are paying a fortune for driving sh1tty old 1970's tech cars with 2010 labels on them. The same money will get us much better rides now. Sick of mehran, alto and swift trolling Pakistani streets! Domestic industries should learn to compete on quality, quantity and offerings..Not expect to sell 1970's vehicles at 300% profit taking advantage of government protectionist policies. An average joe pays the same sticker price what anyone else would in the world. However what we get in the international price of corolla is 1970's 800cc crapper.

We should invite foreign manufacturers into Pakistan and open auto imports from India to kill the local auto industry once for all. The people rendered unemployed will find new jobs with these foreign companies and dealerships at much better pay scale.

 

[Fracker]

Taxes GoP impose on the automobile are insane, which don't allow local market to grow as Indians are.

Unfortunately there is no made in pakistan car available. Mehran and alto like cars also get exported from Japan, but in the parts form. So nothing difference this will make then just improve healthy competition in the local market.

....we are paying a fortune for driving sh1tty old 1970's tech cars with 2010 labels ....

Excellent point

 

[regular]

It will be best for the local car industry to come on the right track and don't loot of the peoples money for sh*tty car manufacturing....The car imports will drive up the competition of the local manufacturers with the international levels . The price of the cars will go down and will benefit the economy as well...We really need to get rid of the monopoly of the local manufacturers here......

 

[NiceFarmer]

I was working with a local assembler few years back in model development and i seriously thinks they need to cut prices and their cartel must be suppressed

 

[SQ8]

My 2006 compact has more features , a more powerful engine.. more space.. and better mileage than the current 2011 company sedan model that costs 500000 more to procure.

 

[BATMAN]

And what domestic car manufacturing ability did Pakistan have till date??

Even the Mehran Alto is not Pakistani, they are Japanese, designed and made by Suzuki. Mehran is just a JV to licence produce them in Pakistan.

Why don't you file a suit? There is no such thing as copy rights on auto technology.

 

[Donatello]

I never understand how importation of used cars will negatively affect the country's economy? I mean, yes, more Rupee would sold to buy the relevant foreign currency to pay the dealers, but then thats it. That's normal trade. Rupee takes a hit more when you freaking go out begging for $$$$ in front of the world from IMF on loans that rip you off.

---------- Post added at 08:37 PM ---------- Previous post was at 08:36 PM ----------

My 2006 compact has more features , a more powerful engine.. more space.. and better mileage than the current 2011 company sedan model that costs 500000 more to procure.

Not to mention that Suzuki doesn't even bother to put stuff like defogger on some of their cars today.....when it was present years ago. Prices keep going up for the crap, yet the features keep coming down.

People should boycott local cars.