The Sandman
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11th Nov 2015,
Islamabad: Government is in a fix as powerful auto industry is exerting full pressure on government to get maximum benefits in upcoming auto policy 2015, whereas local stakeholders are demanding international standard cars at reasonable rates.
In this regard, visit of Japanese high-level delegation to the country is considered one of the most significant. Japanese Vice-Minister for Economy, Trade & Industry Tuneo Kitamura along his officials held a number of meetings with different officials. The delegation also met with Minister for Industries and Production Ghulam Murtaza Khan Jatoi at his home on Tuesday. Ambassador of Japan to Pakistan Hiroshi Inomata was also present in the meeting.
According to sources during the meeting visiting delegates insisted on more concessions for the Japanese assemblers in the country. The officials were careful in revealing any further details of the meeting.
Kitamura looked forward to the new auto policy and hoped that the Pakistani government will give incentives to existing investors as well, said an official handout from Ministry of Industries. The carefully written press release further mentioned that some of the assurances were given by Jatoi to his Japanese guests.
The Minister assured that he would try to extend as much support as he can for new and existing stakeholders in the automobile industry and will ensure that a competitive environment prevails, the release said.
Sources claimed that Japanese delegation insisted that government should not press Japanese assemblers to follow international standard safety and security features.
The guests also requested to allow Japanese car assemblers to increase their prices, which are already very high as compare to neighboring countries.
Since 1980, Japanese car assemblers are selling the same technology at the price of latest equipped cars. These local cars lack basic security features. They even cannot pass a basic crash test, a basic requirement for all automobile manufacturers in developed countries.
Many years ago, government announced to formulate a new policy where all the assemblers will be bound to follow standards, charge rational prices and break monopoly of few assemblers in the market.
Prime Minister Nawaz Sharif after coming into power in 2013, announced to formulate a five-year auto policy, which would provide level playing field for all the auto manufacturers in the country, but it has yet to be announced.
According to the Ministry of Industries official the delay was due to pressure from industry, as top auto assemblers have not only deputed their representatives, with huge budgets to lobby the architects of the new plan but also The Engineering Development Board (EDB) and Ministry of Finance.
Stakeholders have been pointing out that in every part of the world car manufactures provide certificate of crash test, which tells that in case of any crash, would passengers be safe or not, but in Pakistan no car assembler including Toyota, Suzuki, Honda is providing the crash test report for any vehicle assembled in the country.
It is pertinent to mention that, according to sources, the powerful auto mafia never let the government to make any crash test facility operational.
In absence of any standards car manufacturers are making cars thinner and lighter every year, to make them more fuel efficient, making them more vulnerable to fatal accidents.
According to officials the technology of Mehran and Cultus is of 80’s, and every year company do smaller changes and market it as new model.Toyota is using same body (Shell) for its most of the models but there is a great disparity in the prices, Honda was no different.
In addition to quality standards, pricing is another major subject, which was promised to be regulated in the new policy. The prices of Toyota and Suzuki are almost double in Pakistani market as compare to neighboring India.
Official claimed that the final document will be drafted in such a way that will allow major Japanese assemblers including Toyota and Suzuki to continue selling same obsolete technology at same exorbitant prices, or even more.
Auto policy: Mighty industry pressure puts govt in a fix
Islamabad: Government is in a fix as powerful auto industry is exerting full pressure on government to get maximum benefits in upcoming auto policy 2015, whereas local stakeholders are demanding international standard cars at reasonable rates.
In this regard, visit of Japanese high-level delegation to the country is considered one of the most significant. Japanese Vice-Minister for Economy, Trade & Industry Tuneo Kitamura along his officials held a number of meetings with different officials. The delegation also met with Minister for Industries and Production Ghulam Murtaza Khan Jatoi at his home on Tuesday. Ambassador of Japan to Pakistan Hiroshi Inomata was also present in the meeting.
According to sources during the meeting visiting delegates insisted on more concessions for the Japanese assemblers in the country. The officials were careful in revealing any further details of the meeting.
Kitamura looked forward to the new auto policy and hoped that the Pakistani government will give incentives to existing investors as well, said an official handout from Ministry of Industries. The carefully written press release further mentioned that some of the assurances were given by Jatoi to his Japanese guests.
The Minister assured that he would try to extend as much support as he can for new and existing stakeholders in the automobile industry and will ensure that a competitive environment prevails, the release said.
Sources claimed that Japanese delegation insisted that government should not press Japanese assemblers to follow international standard safety and security features.
The guests also requested to allow Japanese car assemblers to increase their prices, which are already very high as compare to neighboring countries.
Since 1980, Japanese car assemblers are selling the same technology at the price of latest equipped cars. These local cars lack basic security features. They even cannot pass a basic crash test, a basic requirement for all automobile manufacturers in developed countries.
Many years ago, government announced to formulate a new policy where all the assemblers will be bound to follow standards, charge rational prices and break monopoly of few assemblers in the market.
Prime Minister Nawaz Sharif after coming into power in 2013, announced to formulate a five-year auto policy, which would provide level playing field for all the auto manufacturers in the country, but it has yet to be announced.
According to the Ministry of Industries official the delay was due to pressure from industry, as top auto assemblers have not only deputed their representatives, with huge budgets to lobby the architects of the new plan but also The Engineering Development Board (EDB) and Ministry of Finance.
Stakeholders have been pointing out that in every part of the world car manufactures provide certificate of crash test, which tells that in case of any crash, would passengers be safe or not, but in Pakistan no car assembler including Toyota, Suzuki, Honda is providing the crash test report for any vehicle assembled in the country.
It is pertinent to mention that, according to sources, the powerful auto mafia never let the government to make any crash test facility operational.
In absence of any standards car manufacturers are making cars thinner and lighter every year, to make them more fuel efficient, making them more vulnerable to fatal accidents.
According to officials the technology of Mehran and Cultus is of 80’s, and every year company do smaller changes and market it as new model.Toyota is using same body (Shell) for its most of the models but there is a great disparity in the prices, Honda was no different.
In addition to quality standards, pricing is another major subject, which was promised to be regulated in the new policy. The prices of Toyota and Suzuki are almost double in Pakistani market as compare to neighboring India.
Official claimed that the final document will be drafted in such a way that will allow major Japanese assemblers including Toyota and Suzuki to continue selling same obsolete technology at same exorbitant prices, or even more.
Auto policy: Mighty industry pressure puts govt in a fix
