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Long-term auto policy


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WHILE addressing a gathering recently after inaugurating an automobile assembly plant in the vicinity of Port Bin Qasim at Karachi, the prime minister informed the gathering that the government is working on a long-term auto-industry policy.

He said further that the government was ready to support experimental and innovative vehicles in order to make vehicles available to the common man.

Indeed, this is good news for entrepreneurs, as well as for customers. However, it is worth mentioning that in the past there had been several attempts at the federal level to bring in innovation and attract foreign investment to the automobile sector.

However, efforts have remained patchy and fraught with inconsistencies in government policies that further deprived the auto mobile industry of infrastructure essential for making any significant headway in this direction.

If we look at automobile sectors of India and Indonesia, the automobile industry in both the countries has grown manifold in the past few years.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), India’s domestic growth in the auto sector during April alone was 9.94 per cent whereas the passenger vehicle sales in India rose to 11 per cent in June.

Further, SIAM has projected car sales for FY 2013 to nine to 10 per cent, which is yet impressive and almost double of their economic growth rate of 5.6 per annum.

Considering the remarkable growth of the Indonesian market in recent years, Japan’s Toyota group recently announced an investment package of $1.3 billion to expand its production in Indonesia.

The investment will not only create 9,000 new jobs, but will also bring in latest technology with ownership rights to Indonesia to further expand the automobile sector domestically.

Now the question is whether the government of Pakistan can introduce a long - term auto mobile policy, which is overdue. Moreover, no auto mobile policy will be considered beneficial to the country without giving due consideration to the road infrastructure in the country. With poor road network and narrow streets under encroachments, the insensible increase in the number of cars on the road will make life of commoners’ difficult.

Furthermore, the automobile policy in the absence of a regulatory mechanism to control the vehicular emissions will play havoc with the health of citizens and will be equally bad for the environment.

I hope the prime minister will ensure that all prerequisites are in place before the announcement of the long-term auto policy.


Comments (1) Closed

Salah-ud-Din Nov 15, 2012 04:28am
That is a good one, keep it up! I would like to add here one more element for consideration. I have seen Indian's Tata, Maruti and other cars on the roads in the countries like Sudan and I ask myself ''Why can't Pakistani automobile manufacturer not think about exporting their cars to such places?''. The answer came immediately from a corner of my mind: ''They make a fortune by selling shitty cars at unreasonably high prices to the local population who are just going crazy day by day for new cars. Who will buy the crap Pakistani Suzuki or Corolla in a foreign country?'' Moreover, in order to protect the environment, the government needs to invest in the public transport as well healthy habbits of ''walking to the office or riding a bicycle''. These may sound weired and unrealistic in big cities like Karachi and Lahore or even Pindi and Islamabad, but in small cities or towns and villages they are certainly possible. I still remember my private school teachers coming to schools on bicycle, and now mostly teachers go in cars! Even young children do not go walking to schools and are dropped by the drivers in the government cars, which are provided to their parents for office use only.