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New restriction irks used car importers

Published Nov 23, 2012 03:29am


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KARACHI, Nov 22: An ECC decision of reducing the age limit of used cars import from five to three years has been hailed by local assemblers and vendors, but importers have rejected the move.

Pakistan Automotive Manufacturers Association chairman Pervez Ghias said that the government had acted decisively in the larger national interest, and it was necessary for local industry’s survival.

He expressed the hope that the Auto Industry Development Programme would also be approved, giving the industry an impetus for growth.

Balochistan Wheels’s GM sales and marketing Shiakh Mohammad Iqbal said the decision would help local auto industry boost sales, create jobs and transfer of technology.

He said that dealers of used cars are not stakeholders and the government should impose a ban on them for misusing the policy of import of used cars.

Overseas Pakistanis be advised to get their cars cleared from the customs with clearing forwarding agents.

To avoid misuse of gift baggage and transfer of residence scheme, the government should impose a ban on transfer / sale of cars to any other person for one year from the date of import of the vehicle in Pakistan.

All-Pakistan Motor Dealers Association Chairman H.M. Shahzad saw monopoly of car assemblers after the reduction in the age limit of used cars, coupled with an increase in prices and black-marketing.

He said that the government would lose over Rs30bn in terms of revenue from used car imports.

The ECC decision is tantamount to complete closure of used car import business as three-year old cars are costly in Japan while the present depreciation policy would further make used cars costlier by Rs150,000-200,000.

From July 2012 to November 22, import of used cars stood at around 20,000.

He urged the president and the prime minister to reconsider the decision.

He added that the consumers would be denied their right to buy a good quality car of their own choice with all accessories and safety features at an affordable price.

Zeeshan Afzal of Top Line Securities recalled that due to the relaxation of age limit, used car dealers imported approximately 56,000 units in FY12 as compared to 20,000 units in FY11, making an adverse impact on local automobile industry.

Due to availability of a cheap substitute and rising inventory levels in the market, local auto industry sales declined by 31 per cent to 40,000 units in 4MFY13 as compared to 59,000 units in the same period last year.


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Comments (23) Closed

Veecho Nov 24, 2012 12:47pm
I would request all sensible people of Pakistan to file maximum law suites in the court of Law against Government's decision on reducing the age of imported cars from five years to three years. The Quality of imported cars are far better than locally made (price hiked) cars, Road and passenger safety is more in imported cars, very environment friendly. Whole world is now focusing on substitute energy resources or substitute fuel for automotive like HYBRID technology is taking a lead. Imported cars are also equipped with this technology which helps in current(CNG) crisis, moreover these cars are very good in fuel economy. A common man can get a very good car in reasonable price with all safety and accessories which are deficient in low quality and price high locally manufactured cars of Pakistan. The only argument in support of which Government has reduced the age limit is the survival of local car industry, I would like to ask the Government have they ever taken concrete steps in reduction of unnecessary price hike in local car industry, NO never. Please think and restore in the best interest of Pakistan and its people, as it will boost Revenue generation definitely not your own pockets.
kkhan Nov 24, 2012 02:44am
faisal you are 100% right, used japanese 50000 kim used,, is far better then zero meter local assembled
Cyrus Howell Nov 23, 2012 10:03am
"Pakistan Automotive Manufacturers Association chairman Pervez Ghias said that the government had acted decisively in the larger national interest, and it was necessary for local industry
TAimur Alee Nov 26, 2012 09:14pm
keep on crying people .......... because this is all to get 10%!!!!!!!!
ak Nov 23, 2012 09:31am
This is a farce. the automotive manufacturers have no right to call themselves manufacturers when they are merely assemblers and employ a bare minimum of people while reaping massive profits b monopolising the industry. just a few months ago i paid 1.6 million rupees for a honda city. a poorly made, poorly assembled car which would not even be in my top 20 cars to choose from with such a budget in a real country.
faisal bin bashir Nov 23, 2012 08:00am
Pakistani Local car manufacturers are mafia group who like to steal money from normal hard working Pakistani's,for example if you go to buy a new car they ask for bribe under the name "OWN" and u must pay this "OWN" amount if you want to take the zero meter new car within a week other wise wait for three to six months, and this bribe is official in all the authorised show rooms around Pakistan, and the amount is from fifity thousand rupees to three hundred thousand rupees, on the top of the actual price of the by importing used cars from abroad made halt on this extra bribe money going in the hands of GODS of car inudustry and this is making them upset...
Athar Siddiqui Nov 24, 2012 09:11am
Yes it very true...agreed with you that common people may restrict to use Mobile Phone, Motor Bike and now cars...
kimi Nov 23, 2012 04:50pm
so true .. 2nd it
Athar Siddiqui Nov 24, 2012 09:17am
They claiming these used cars are Junk , if it is true than why peoples prefer to buy even higher price. They should open the door and let consumers to choice new or used cars.
Athar Siddiqui Nov 24, 2012 09:19am
Yes only open competition can be proof of quality of used cars imported from Japan or new car from local dealer.
Athar Siddiqui Nov 24, 2012 09:23am
it is not true the restriction in the larger national interest but Should be largest interest of these manufactures ,
Athar Siddiqui Nov 24, 2012 09:27am
Yes ..they always need advance payment and consumer have to wait for long time or if you like to get ready delivery than have to pay own amount. and therefore they always against these used cars. They don't believed fare practice and like to monopoly.
Wali Pirzada Nov 24, 2012 06:44pm
One more gem lost... Could someone translate his work in Urdu so common can get some sensible readings please!
Ahsen Tanoli Nov 25, 2012 05:59pm
Pakistani Auto Mobile Sector needs New Entrants as they have neutralized the market forces. Auto Manufacturers segregated the market by Engine Power Capacity and are Behaving more like a Cartel Suzuki is limited to Cars from low 800cc to 1300cc and Toyota and Honda are in 1300cc and 1600 so how Consumers could expect relief from them.
M.K Nov 24, 2012 08:18am
what more can we expect from this corrupt we are forced to buy Suzuki mehran as compared to 650000 vitz with better safety features and excellent performance.. all Suzuki dose in the name of model upgrade is it puts up an sticker euro 2 euro 3.........
Wali Pirzada Nov 24, 2012 03:52am
Pakistan's car assemblers, though they claim to be manufacturers, have formed a cartel to manipulate the market. compare the standard and features of Suzuki Cultus and imported Vitz or other cars in the range of Rs. 1million, you will realize how the cartel has been plundering people who earlier had no choice. Once people have started shifting, the local cartels have been propagating in paper media against imported cars. I bought a brand new Suzuki van 4 years back and it was full of faults. I wondered how it came out of the factory. I have been using an imported cars for last 4 years and it is always great joy to drive it since it is running perfectly. A country's larger and best interest is people not cartels..
Asad Shah Nov 24, 2012 04:33am
The title of this story should ha been "New restriction irks used car importers AND general public"
Mystic Nov 24, 2012 07:31pm
We need fewer cars on our roads, not more. Government should also increase duty on imported cars and use funds to import buses and other public transport vehicles. Cars should be as expensive as possible while public transport should be cheap and comfortable. We are choking our children with fumes!!!!!
Imran Ahmed (@IAgnikul) Nov 23, 2012 08:20pm
The cars are not manufactured locally, they are simply shoddily put together with dangerously sub standard parts. This process is laughingly referred to as locally assembled. The few bolted on bits of genuinely local origin are of even more dubious quality. This farce should stop and we should only import quality vehicles, let the market operate freely. Enforce safety features, impound and destroy unroadworthy vehicles old or new.
Ashraf Nov 24, 2012 10:26am
Car importers should bring this issue in the notice of the higher courts to seek justice.
nomi Nov 23, 2012 10:07am
Only competition helps in reducing prices and improve quality. The auto manufacturers association benefits from monopoly and that it does by greasing palms of Federal Ministries that advocate change for approval of Economic Coordination Council of the Cabinet. Its very easy for used-car importers to convince the government to change its stance. All we need is a bit more palm greasing. Nov 23, 2012 10:48am
The local manufactured cars lack all the safety features that are essential for cars made in Europe and Japan.It is ironic that they produce cheap cars and charge the consumers a hefty amount,The consumer should have the right to choose a car which is safe and reliable.Toyota and Honda have not introduced any more models to suite the demand of the people. In other countries small hatches,saloon,5 doors and 7 seaters are available but unfortunately Honda/Toyota and Suzuki have failed to deliver.Suzuki and Toyota should be ashamed of producing substandard cars which are responsible for the loss of so many lives.All the imported cars have ABS/stability control, multiple airbags and rear seat belts as standard , Do Toyota ,Honda and Suzuki have these features as standard? If they can provide this to their own consumers then why not to poor Pakistani costumers who die in road accidents because of lack of these features. Nov 24, 2012 04:49am
The problem people on this forum fail to understand is that the government is for these mafias and not for the people. No where in the world a government limits choices given to people in favor of a mafia. Let people decide if they want import or local. Local cars are a rip off.