Pama urges government to review used cars import decision

Any further relaxation in used vehicles' import will result in total closure of local auto makers with a job loss of more than two million workers in auto and allied engineering industry, this was stated by a spokesman for Pakistan Automotive Manufacturers Association (PAMA) in a statement issued on Tuesday.
The spokesman said that as the prices of five years old imported cars are almost the same as those of brand new locally manufactured cars causing embarrassment to the government which allowed the imports to make cheaper cars available to consumers, the tax evading, trader mafia has mustered the courage to further this embarrassment by demanding relaxation on commercial import of used cars up to 10-year-old which is suicidal for our already precarious economy.
PAMA spokesman said the auto industry has been deeply perturbed by this new ridiculous demand of a lobby which does not contribute in job provision or technology transfer and evade taxes on large scale besides under invoicing and fleecing the customers, has not only asked the Federal Minister of Commerce, to further relax the age limit of used imported cars from five years to 10 years but also to allow the commercial imports of the same. "This will destroy the local industry and would make Pakistan a junkyard" he said warning that the resultant job losses could create serious social situation for the Government of Pakistan (GoP).
He pointed out that the government was deceived by this lobby to believe that the rates of locally produced cars are very high. He said the car assemblers provided the government with authentic data to prove that the vehicle rates in Pakistan are in fact lower than many countries including India and Thailand but the car dealers successfully tricked the government and resultantly GOP relaxed the import of used cars up to five years.
He further added that now the local market is flooded with used imported cars but their rates are extremely high compared with their age. A used imported four-five years old Suzuki Alto with an engine of 650 CC and depending on condition is being sold in the local market at Rs 700,000 to Rs 750,000 where as customer could buy brand new locally made alto with 1000 CC engine for this much money.
Similarly, he said that another most imported brand Vitz costs a little over Rs 1.1 million while its parallel version Suzuki Swift is marketed by local manufacturer at the same price. Furthermore, he added that mostly luxury cars are being imported which is depriving GoP of precious foreign exchange.
The spokesman said the government definitely has all the information in this regard and should have reprimanded the dealers that assured that the rates of used cars would be much lower to benefit the consumers. He said that now the importers' lobby has come up with the idea of bringing in 10-year-old used cars that are considered junk the world over. These cars would increase pollution levels in the country and would burden the consumers in long run, he added because of non availability of spare parts and local capacity for after sales service.
"To allow import of used vehicles commercially will not only be unfair to the poor consumers but a death warrant for the local industry which has invested billions of rupees over past decade and provided jobs to millions of local youth". He said no sane country having its own local car industry allows import of used cars freely.
He said that even when elsewhere in the world restricted import under change of residence is allowed the duty rates are so high and environmental conditions so stringent import of used cars become unviable for true owners as well. He said that the government after observing the prices of used imported cars should have reviewed its decision to allow import of used cars. Instead, he regretted the state is encouraging unscrupulous elements to fleece the unaware consumers.-PR