EDB flays 100 percent increase in car prices by OEMs

Engineering Development Board (EDB) Ministry of Industries has flayed 100 percent increase in car prices by the Original Equipment Manufacturers (OEMs) during the past four years and said they should bring down prices of their cars in accordance with the devaluation of Pak rupee against dollar.
Talking to Business Recorder EDB Chairman/Chief Executive Aitazaz A Niazi said, "I have told the OEMs that Pak rupee has devalued by 50 percent but prices of locally assembled cars have been raised by 100 percent.
Niazi said, "I held a lengthy meeting with the stakeholders on Friday which was attended by top executives of Indus Motors, Honda Motors, Pak Suzuki, Pakistan Automotive Manufacturers Association (PAMA) , Chairman and Vice Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM).
During the meeting EDB stressed that prices of all automobiles including cars could only be brought down by maximum localisation of auto parts as per incentives under SRO 693 and the 5-year Auto Industry Development Plan(AIDP) 2006.
Niazi said instead of implementing the AIDP for 80 to 90 percent localization of the auto parts, the car assemblers (OEMs) have again asked the government to revisit the SRO 693 and AIDP and postpone the indigenization of the auto industry. Chairman PAAPAM Nabeel Hashmi said that during the meeting PAAPAM representatives demanded of the government to follow consistent policy for the local vending industry and ensure complete implementation of the five-year AIDP in letter and in spirit.
He said the local vending industry is manufacturing only 50 percent parts and the OEMs continue to import the most technological and high-tech parts from the parent companies of the local assemblers. 'The automotive parts manufacturers are already providing 80 to 90 percent locally made parts for motorcycles, rickshaws and tractors. With incentives by the government the auto vending industry has the capacity to increase export of auto parts to $ one billion per year besides creating hundreds of thousands of jobs for the skilled labour force.