Protecting local auto industry

Published Jul 16, 2012 03:42am

THIS is apropos of the recent news concerning the so-called ‘inducements’ extended by the local car assemblers to ensure protection of their industry. The issue raised by the ‘well-wishing’ members of the National Assembly questioned the need for protection of the local auto industry and demanded that cars should be allowed to be imported from India.

The only beneficiaries of such requests will be the dealers who contribute nothing towards the economic output.

One would like to point out that allowing such requests to be granted will ultimately do more harm than good to the economy and will also serve as a severe blow to the domestic auto industry.

Local auto companies manufacture new vehicles that are sold at the same cost as the used vehicles that are imported from other countries. A strong auto sector that is providing employment opportunities and makes significant contribution to economic growth of a country is a key industry.

Already the leniency granted for the import of used cars due to lack of tariff barriers has flooded the market with cars that are much below standard. These cars are neither beneficial to the economy nor do they provide the customer with any advantages as they cost far more than their actual worth and end up being a liability due to their ever-rising maintenance costs.

The government should take initiatives to support and protect local industries.

SYED OVAIS AKHTAR Karachi


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Comments (13) Closed




Sam
Jul 16, 2012 07:47am
Local cars are very very very expensive.
farhat
Jul 16, 2012 11:06am
Sorry to say ...that the local car manufacturers are looting the people of Pakistan. I have a brand new Suzuki cultus car ..but every day it suffers from some problem (manufacturing defects) and inspite of being ill-manufactured, the prices are sky rocketing. There was a time when the car manufacturing industry was at verge of bankrupcy world-wide, but still the pakistani car assemblers made profits. Shame on these people. They do not serve Pakistan.. Only filling their pockets
Guest
Jul 16, 2012 11:57am
Protection of domestic industry is important but it should not breed inefficiency . Opening industry with some checks and balances is way forward. Like importing of car kits rather than finished products so that more assembly lines are setup . Increasing import duties on 2nd hand cars may be a move in right direction so that domestic industry flourishes. Phasing out vehicles especially from cities and introducing road user charges and tolls on major networks to boost revenue is way forward Blind protection of local industry will benefit few and induce corruption
Sajjad
Jul 16, 2012 01:05pm
Dear Sir, I earn in USD and it does not come easy. I spend sleepless nights to serve my offshore clients and in return i expect some quality product in the price that i pay. Its time that local assemblers start competing with imported 5 year old cars.
sajjad
Jul 16, 2012 01:01pm
"The only beneficiaries of such requests will be the dealers who contribute nothing towards the economic output." The cars which are imported arrive on roads after paying extremely high duties which definitetly contributes to the economy. the local cartel of car assemblers are rather a burden to this economy as taxes earned by government through these local craps is close to 20% of the price rather than atleast 70%-80% of the price which is paid on imported cars. The parts for local cars such as engines, patented body parts are still imported by the assemblers and that is close to the same import bill that we expect on foreign Auto imports. Local assemblers have enjoyed their holiday time for years now and its now the consumer who should be given the liberty to make a choice out of his hard earned money.
Nabil
Jul 16, 2012 10:30am
enough with 30 years of protection...
Riaz Buit
Jul 16, 2012 10:55am
Be Pakistani and buy Pakistani. Our products quality will never improve unless we use it and comments positively regarding its price, availibility, parts availability etc. Why do not we sarifice by buying local materials and raise voices whereever we feel that price is not worth of its quality but being a poor country, we cannot afford to convery Pakstistani currrency into dollers for payment of imported cars/vehicles. So be with your own country and spend here not outside Pakistan.
alo
Jul 16, 2012 12:33pm
I agree with Jamshed!! and the imports will break the monopoly of the local car assemblers..hence they'll strive for making the quality of locally manufactyured cars somehow better.... country's economy can be strengthened by other means..the world doesnt end at car assembling... We shall also get rid of the shitty ; oldfashioned-zero confort cars.
Fahad
Jul 16, 2012 06:27am
Hey, but it will ensure that the ' ridiculous' prices of the cars produced by our local companies will come down. It is a way to end their monopoly and give middle class people some financial and aesthetic choices.
Local Customer
Jul 16, 2012 06:55am
The used vehicles that are imported from other countries are far more better in quality and value for money as compared to the so called junk 'new vehicles' churned out by so called 'Local auto companies' . . . And for your information these imported cars do provide the customers with advantages like SAFETY through the features like AIR BAGS and ABS Brakes which are missing from 80% of the local tin can cars with models from 1980s . . .
jamshed
Jul 16, 2012 08:55am
Local manufactured brand new car manufacturers are afraid of the competition from used 5 year old imported car. That tells it all. And for GOD's sake don't call toyota, honda & suzuki local cars. They are Japanese companies not Pakistani at all. I THINK PAKISTANI CONSUMER SHOULD BE GIVEN CHOICE TO BUY THEIR CARS WHEREVER THEY WANT. IF LOCAL MADE CARS A SO GOOD WHY ARE THEY AFRAID OF OLD & USED CAR IMPORTS.
tosha
Jul 16, 2012 03:31pm
MR riaz, this term local assembler should bolded as nothing as such is pakistani, the sale of the cars do not benefit Pakistan as much is it does to foriegn corporates. There is definitely a need of fully indiginously built cars in Pakistan so that the import of these car components from foreign countries be curtailed. The auto-industry is quite burden on the Import bill which brings down the pakistani economy. But what needs to be done is that the local car manufacturers be checked so that they cant just apply their own rates. furthermore the imported cars which come to pakistan aren't that expensive as compared to the locally built cars it just the import duty which makes the car four times the price. We also need to revisit are import rules and taxes.
Taxla
Jul 16, 2012 06:06pm
Sir, no dis-respect to u, but what GOD has to do with Japs.cars. As for the quality and workmanship of locally assembled cars , I can say with certainty that even 5 yrs.old used Japanese manufactured cars will beat them handsdown and that is no brainer.