LAHORE – The government’s decision to relax import of used vehicles has triggered greater problems instead of improving the situation, stakeholders of the automobile industry told Pakistan Today.
The government, with this decision, had claimed control of automobile prices in the local industry, however, stakeholders lamented that the government had played a trick with the industry. Stakeholders said that the government had allowed import of five years old vehicles but had not altered the duty structure.
This, they said would not help control automobile prices in the local industry. Earlier, automobile importers were allowed import of used vehicles not older than three years. Stakeholders said that the decision came in December (this month) and this too had thorny reasons. This meant that importers could now get vehicles from 2006 and onwards but from January 2011, only model 2007 and onwards could be imported.
“It is a trick to fool the masses and to pressurise local manufacturers for personal reasons,” said a car dealer Rizwan Goraya of Jail Road, adding that the minister had used the word ‘car’ in the notification, which was quite controversial. “It means only cars could be imported and other categories like jeeps, wagons and buses were not included.”
He also said that the buyers had halted purchase of vehicles as they had smelled a possible relaxation in import. “Rumours of this change were existent since last two months and so buyers had abstained from purchasing vehicles, which ultimately posed a negative impact on our business,” said Rizwan Goraya.
He claimed that prices of used vehicles in Japan had also surged which had dampened business activity. He further stated that the government had informed the local industry that relaxation in import would not be given and had later increased prices.
He blamed the government of being insincere with the people and claimed that if the government had actually wished to lessen the burden of people, it would have lowered the duty structure.
Jail Road Traders Association General Secretary Zafar Iqbal said that the industry was already in doldrums and the government should have looked to provide some relief. “People have already stopped buying vehicles with a hope of getting cheaper vehicles. This has adversely impacted our business, which has almost reached a halt,” Zafar Iqbal grieved. Customers also flayed with the government’s decision of relaxing import.
“The local manufacturers are plundering people by selling substandard vehicles at higher prices, but the government has stayed apathetic and is looking to provide relief to the local automobile manufacturers,” said a banker Sadeed Malhi adding that local manufacturers had raised prices on quarterly basis.
“Competition Commission of Pakistan (CCP) has already asked the government to break the cartel of local manufacturers but the government is acting oppositely,” he added.
