Call for stopping 'misuse' of used car import's policy

Import of used cars in FY2011-12 is likely to touch the alarming figure of 40 thousand units, which would be another dent in local car manufacturing industry, therefore, misuse of the policy of import of used car should be stopped. This was stated by Ali Asgher Jamali, Senior General Manager (Sales and Marketing), Indus Motor Company, while talking to a selected group of media persons here at a local hotel on Monday.
He said that the misuse of the policy can be stopped through policy changes, for example registration should remain in the name of importer for at least two years. Talking about MFN status to India, he said they support trade with India in CKD, raw materials, machinery, jigs etc, but the import of CBU/spare parts should not be allowed because India has competitive advantage due to its market size that has yearly sales of 3.4 million.
"Similarly, in the back of inflation and other issues the industry faces in Pakistan, increase in prices of various items used in manufacturing has been affecting the industry severely," Jamali said. For example, he said, price of steel has increased by 15 percent since 2009, while aluminium by 54 percent, Polypropylene by 122 percent, US$ by 22 percent, Japanese Yen by 70 percent, Thai bath by 32 percent, Minimum wages by 75 percent, electricity by 71 percent, and gas by 44 percent.
The whole phenomenon of price increase, rupee depreciation, and raise in utilities' charges has resulted in sharp increase in input cost while the price increase in IMC products has been nominal ie 16 percent in case of IMC's XLI in the last 42 months, he said.
"Despite all these challenges, Pakistan still has potential for the business and we are encouraged to do more business here," he added. To a question, he said that 125 parts of vehicles would be indigenized and indigenisation must make commercial sense. To another question about CNG-fitted vehicles, he said that though SRO 84 has been issued, the company was still getting orders for CNG vehicles. He said that after the ban on Coure model, the company was working on new models, which would be announced when matured.