Auto Assemblers misusing previous govt policies

Country has lost more than Rs 100 billion in the head of revenues last year due to baggage schemes restrictions

KARACHI: Chairman All Pakistan Motor Dealers Association H. M. Shahzad today asked Hammad Azhar, who has been recently given the charge of Minister for Industries and Production, to take notice of Indus Motor’s decision for enhance prices of its vehicles from Rs 150,000 to Rs 500,000 without any prior notice to the customers.

In a letter sent to minister of industries here on Friday, he said that Pakistan Auto Industry is playing in the hands of three big assemblers with the conspiracy of Engineering Development Board (EDB).

“The previous government with the help of EDB has given policy that deprived the people of their choice to purchase car in affordable price,” he claimed.

The customers are being fleeced by these assemblers for the last 25 to 30 years through advance bookings and long delivery periods, Premium or On-Money, frequent price increases and monopolistic market practices, he added.

He said the car sales had dropped by 50 per cent in last one year. All the assemblers have doubled their prices during last two-years, even when the dollar rate came down to Rs 154.

“Do you increase or decrease prices in times of low sales? Indus Motors’ new Toyota Yaris has not come in the market yet but they have increased price twice,” H M Shahzad said.

Despite passage of 30 years, he blamed that the assemblers of these vehicles don’t manufacture a single functional component and spend millions of dollars in import of CKD/SKD parts.

Chairman APMDA further claimed that their losses are self-engineered and meant to pressurize the government on account of duties and taxation, new entrants and used car import. Through the EDB, which has members of their choice, they have been successful so far.

“The country has lost more than Rs 100 billion in the head of revenues last year due to baggage schemes restrictions alone,” he added. 

“We have been demanding the government that it should allow commercial import of vehicles like these assemblers,” he claimed.  Now again, the government is making new policy in which the importers of vehicles are being ignored.

Shahzad further blamed that the quality and safety features of the locally manufactured cars are well known.

He further requested him to include the businessmen (car importers) in the committee to assist you in making new policy as the government is being misused by the local assemblers, therefore, the government should allow commercial import of used cars.

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