Karachi: Pakistan Automotive Manufacturers Association PAMA has asked the honourable elected members of National Assembly/ Senate and members of civil society to look into the issue of used cars import in larger national interest which require them to dissuade the imports of finished goods in favour of local manufacturing which bring long lasting investment, technology and provide employment.
Director General PAMA Abdul Waheed in a statement said that the industry has still to recover from the adverse impact of 2008 crisis and the issues in local auto manufacturing sector that could be addressed through proper regulation and prudent transparent policies. “However this certainly does not mean to chalk out a plan to ruin the local auto industry providing employment to over 1.7 million skilled workers, saving foreign exchange and paying huge amounts in duties and taxes in a transparent manner supporting the local economy,” he added.
He said there is a need to look at the used cars issue dispassionately and without prejudice. They said the import of used cars was allowed on the pretext that the rates of cars manufactured locally are very high and beyond the reach of low end consumers whereas most of vehicles produced locally are lower in prices in comparison with those in the region while 5 year old cars were still expensive than locally made brand new cars.
“The prices of five years old used cars that entered Pakistan at subsidized import duty of 40 percent as the duty was paid on very low assessed value whereas the cost of similar new models in the global market is almost double than the assessed value,” he said requesting the people’s representatives to verify these facts independently from the makers of those new cars. The anomalies in assessment if removed will prove the fact that Pakistani made cars are still cheaper than used cars.
He said these extraordinarily unreasonable concessions should have brought very low priced cars compared with the similar new models produced locally but the rates of five years old used cars in the local market are almost at par or in some cases higher than the similar brand new models produced in Pakistan.” So what did we get after all this exercise” he asked. “We have ended up with high priced used cars which have exhausted their prime life abroad and would go out of roads in three to four years meanwhile inflicting a unrecoverable damage to local car production,” he added.
He appealed the members of the National Assembly to conduct a survey of the market and find out what happened to the used cars that were imported in 2007. He said five years later many of these cars are in junk yards whereas you can find even 20 years old Pakistani models still running in perfect condition. He said survey of consumers having used these old imported cars for three years would reveal their frustration. “Ninety percent of those who bought used cars in 2007 preferred to buy either a new Pakistani car as replacement or a used Pakistani car,” he added.