On road to indigenization

Published December 15, 2003

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People have long criticized the auto industry. The industry is alleged for charging premium and making late delivery of automobiles. The need is to evaluate this sector impartially.

The investment by car manufacturers is over Rs8 billion, with Rs30 billion yearly contribution to the national exchequer. It provides livelihood to over 115,000 people. Continued efforts of the industry are evident from the increased production with 62 per cent growth. This was possible through the initiation of second shift by most manufacturers.

People question the quality and make allegations merely to convince the government to import cars. The auto industry has come a long way to where it stands now, and throughout the last 20 decades, it has tried to implement the international standards of quality manufacturing. Before the prototype of a locally-manufactured part is used by the domestic manufacturers, it is tested by the original manufacturers at their facilities and given a certification of quality. This quality control sets a benchmark and ensures that all parts subsequently manufactured are of the same quality. They are checked for any possible malfunction to avoid any hiccups in the final assembly of the vehicle, allowing smooth operation.

Certain auto manufacturers are sponsoring technical education programmes on national level to produce skilled and literate workforce for the auto sector. In spite of all this, it appears that a certain lobby is keen to bring re-conditioned cars back into the market to serve their own personal interests.

The question arises is it their primary objective to make cheaper cars available to the public? Or is it a convenient excuse to hide a multitude of less than ethical business practices that are not in the interests of either the government or the consumer?

This lobby refuses to acknowledge the new customer-friendly policies introduced by major automobile manufacturers. These policies have resulted in bringing about a sea change in the automobile market, according to both industry insiders as well as formerly hard-pressed customers.

The market has now seen the end of long waits for delivery premiums paid to investors and the trade for immediate delivery and having to pay the full price of the vehicle in advance. What’s more, even the auto dealers appear to be happy with the new policy.

The auto sector is currently facing fast paced growth. The unhappy ones are the middlemen who had vested interests and have relied on the shortage of vehicles to achieve their questionable ends. Groups that should have been supportive are making adverse efforts to paralyse the industry, while expecting an unrealistic overnight indigenization.

It should be judged on the basis that within the last 10 years, Pakistan stands at par with any other developing country that enjoys a healthy automobile industry. It is time critics and other self-centred factions realize the significance of the auto industry by virtue of its contributions towards the prosperity of Pakistan, and at the same time, acknowledge its success in fulfilling its commitments to the consumers, in terms of quality, service, value and delivery.

Talha Bin Hissam

Karachi

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