A.Rafay
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LAHORE: The government of Pakistan will have to decide about making country a manufacturing hub or a trading centre.
Pakistans auto sector has been producing vehicles of international standards, and review in governments policies is needed to lower down the prices of cars by protecting local industry. The auto sector is ready to compete with India after opening of trade from January 1, 2013 but continuity in policies is required for the competition with India.
These views were expressed by the participants in Jang Economic Session on Auto Industry Crisis - Solutions.
The participants were Economist Dr Nadia Tahir, Indus Motor CEO Pervaiz Giyas, Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Vice Chairman Usman Malik, Metro Group Chairman Mirza Imtiaz and PAAPAM former Chairman Tariq Nazir.
The event was hosted by Sikindar Hameed Lodhi and Intikhab Tariq.
Dr Nadia Tahir said the middle class was compelled to maintain a private car due to unavailability of public transport. She said globally children went to school on buses while in Pakistan situation was the reverse.
She said car lobby was strengthened after 2,000 as leasing was grown by the commercial banks. She said auto sector failed to achieve 5.6 per cent growth target fixed in Auto Industry Development Policy. She said out of 19 registered assemblers five had closed their production while no steps were taken for transfer of technology as well.
She said the auto sector should produce quality cars in accordance with the purchasing powers of consumers.
Pervaiz Giyas called for government attention, streamlining the policies for the auto sector. He said car production in 2006-07 was 220,000 but it declined due to import of used cars. He said the auto industry would face problems till June 2013. He said globally no country assembled car 100 per cent while increase in car sales volume was crucial to improve the auto industry position.
He said made-in-Pakistan Toyota was one of the best cars produced in the world while the government should give tax relief to the taxpayers who purchasing car.
Usman Malik said auto industry was base of engineering sector of Pakistan while 95 per cent tractors and 70 per cent car were manufactured locally. He said imported cars and energy crisis had aggravated problems of the auto industry.
He said the auto industry sector was unable to get gas despite paying taxes heavily. Other than this, bank financing facilities are not available properly and under invoicing is also hurting the industry, he added.
Mirza Imtiaz said two wheelers had achieved targets of Auto Industry Development while four-wheelers failed to deliver.
He said locally assembled motorcycles cost Rs 45,000 while car price started from Rs 600,000 while no product was available for the customers having buying capacity in-between the two prices while complete auto base was available in Pakistan which was rarely available in the other countries of the world. He said Pakistan should also produce Nano-like car.
Tariq Nazir said made-in-Pakistan Toyota and Honda cars were cheaper and better than Indian cars but Nano car was cheaper. He said Pakistan need to develop cheaper car than this car to compete with it. He said made-in-Pakistan tractors were cheaper than Indian tractors while India feared that Pakistan could capture its market after opening of trade.
Auto sector in Pakistan ready to compete with India - thenews.com.pk
Pakistans auto sector has been producing vehicles of international standards, and review in governments policies is needed to lower down the prices of cars by protecting local industry. The auto sector is ready to compete with India after opening of trade from January 1, 2013 but continuity in policies is required for the competition with India.
These views were expressed by the participants in Jang Economic Session on Auto Industry Crisis - Solutions.
The participants were Economist Dr Nadia Tahir, Indus Motor CEO Pervaiz Giyas, Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Vice Chairman Usman Malik, Metro Group Chairman Mirza Imtiaz and PAAPAM former Chairman Tariq Nazir.
The event was hosted by Sikindar Hameed Lodhi and Intikhab Tariq.
Dr Nadia Tahir said the middle class was compelled to maintain a private car due to unavailability of public transport. She said globally children went to school on buses while in Pakistan situation was the reverse.
She said car lobby was strengthened after 2,000 as leasing was grown by the commercial banks. She said auto sector failed to achieve 5.6 per cent growth target fixed in Auto Industry Development Policy. She said out of 19 registered assemblers five had closed their production while no steps were taken for transfer of technology as well.
She said the auto sector should produce quality cars in accordance with the purchasing powers of consumers.
Pervaiz Giyas called for government attention, streamlining the policies for the auto sector. He said car production in 2006-07 was 220,000 but it declined due to import of used cars. He said the auto industry would face problems till June 2013. He said globally no country assembled car 100 per cent while increase in car sales volume was crucial to improve the auto industry position.
He said made-in-Pakistan Toyota was one of the best cars produced in the world while the government should give tax relief to the taxpayers who purchasing car.
Usman Malik said auto industry was base of engineering sector of Pakistan while 95 per cent tractors and 70 per cent car were manufactured locally. He said imported cars and energy crisis had aggravated problems of the auto industry.
He said the auto industry sector was unable to get gas despite paying taxes heavily. Other than this, bank financing facilities are not available properly and under invoicing is also hurting the industry, he added.
Mirza Imtiaz said two wheelers had achieved targets of Auto Industry Development while four-wheelers failed to deliver.
He said locally assembled motorcycles cost Rs 45,000 while car price started from Rs 600,000 while no product was available for the customers having buying capacity in-between the two prices while complete auto base was available in Pakistan which was rarely available in the other countries of the world. He said Pakistan should also produce Nano-like car.
Tariq Nazir said made-in-Pakistan Toyota and Honda cars were cheaper and better than Indian cars but Nano car was cheaper. He said Pakistan need to develop cheaper car than this car to compete with it. He said made-in-Pakistan tractors were cheaper than Indian tractors while India feared that Pakistan could capture its market after opening of trade.
Auto sector in Pakistan ready to compete with India - thenews.com.pk
.
. Pakistan has a huge market and a very low production base so mostly the demand is met by imports. There is no indigenous Pakistani brand to compete with India, so Indian car companies are only looking at competing with toyota etc. We are ready to take the challenge if there is any.
