The Pakistani auto-industry rises
On paper at least, the prospects of the auto industry in Pakistan have started looking rosy enough. Thanks to a liberal government policy, that includes tax-free import of machinery, so far two out of the four European luxury car makers have expressed their intent to invest in Pakistan. First Renault and now the Audi managements consider the political, economic and social conditions in the country complementary to their particular brands of luxury cars known for quality and superb workmanship. If this stated intent actually turns into action, still a moot point considering our revolving door political environment, it would represent a win-win situation for all concerned, like the CPEC.
For local consumers of a certain strata this is welcome news indeed as it offers them a greater diversity of features and elasticity of choice in making their decisions. The monopoly the current brands of automobiles that have long weary waiting lists and can hardly be said to provide true value for money for their products would be dented somewhat. However luxury cars obviously cannot edge out the downscale carmakers totally, as their stringent quality requirements limit their output. But the prices can come down as and when the spare parts used in these vehicles are manufactured here and local labour is imparted skilled training to meet their rigid standards. Hopefully, these luxury imports will also incorporate all the safety and ‘green’ components of their original, environment friendly European models, which is unfortunately not the case with the present available brands of automobiles. But realistically speaking, at this stage, there is still a long uncertain road ahead for this enterprise, with many twists, turns and detours to come, as usually happens in such matters, courtesy the omnipresent, vested interests and the hidebound ways of our bureaucratic apparatus.
For Pakistan, the advent in practice of these world renowned carmakers would indeed be a quantum jump and a force multiplier in its desperate struggle to attract foreign investment and to open up to the world after all these years of terror and turmoil.
Neither Renault nor Audi is going to manufacture cars in Pakistan. They are only going to assemble them and sell them at huge price to local people. We should ask them to set up the manufacturing base for the good of country. That is all.
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