PM’s visit reignites hope in auto-industry turnaround

[Edevelop]

KARACHI: Despite government’s apparent confusion over the upcoming auto policy, the industry has pinned its hope on Prime Minister Nawaz Sharif’s wish to see a ‘Made in Pakistan’ car, expecting to get some incentives.

The local auto industry partly succeeded in getting the attention of the prime minister, who inaugurated the Pakistan Auto Show 2014 in Lahore on Thursday. However, it failed to get any promise from him on the two biggest issues of the industry — a blanket ban on imported used cars and the issue of liberalising trade with India.

Nevertheless, the prime minister’s directive to the government officials to immediately sit with the industry officials and chalk out the future policy has given hope to the local industry. “We are hopeful of getting government support including the national car policy that the prime minister indicated in his speech at the Pakistan Auto Show 2014,” said Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Usman Malik.

Malik, who represents over 2,800 industrial units that produce auto parts, is confident that the prime minister’s directive to the government officials would bring some policy changes. “We’re especially looking forward for the national car policy as it will support the local manufacturing and assembling industry,” he added.

Auto assemblers say their fate hangs in the balance owing to the uncertainty in policies especially on liberal trade with India and the country’s import policy of used cars.

Automobile analysts say that the unusual delay in the announcement of the Auto Industry Development Programme II (AIDP II) suggests that the government is facing problems in dispelling the pressures of the two competitors: carmakers and car importers.

“The government seems confused over the much-awaited AIDP II, which is why it has taken several months in announcing it,” said JS Global Capital analyst Atif Zafar. “It is certainly under pressure from carmakers and car importers who have considerable influence in government circles.”

The delay in auto policy has fuelled speculations. Some say the policy will increase the age-limit for used cars from the current three years to five years, while others say the government may give some incentives to the car assemblers.

Another headache for the auto industry is its clear divisions on the issue of the trade with India. While the only representative of auto parts’ makers, Paapam, is dead set against the liberal trade with India, Pak Suzuki – country’s largest carmaker – is openly supporting the cause.

Pak Suzuki seems more enthusiastic unlike the other two carmakers – Honda Atlas Motors and Indus Motors – because of Suzuki Maruti, an affiliate of Suzuki Japan with over 50% market share in India from where it can import cheap parts for its cars in Pakistan.

Zafar believes the auto part makers in Pakistan are more vulnerable to liberal trade with India compared to the local car assemblers.

“In case Pakistan and India start trading, the likelihood of Pakistan importing car parts is much higher than the import of Indian cars. This is why Pakistani car part makers are more exposed to competition,” he added.

Former Paapam chairman Syed Nabeel Hashmi said that auto part makers just need an assurance from the government that a liberal trade regime with India will not hurt their interests.

Insecurities: PM’s visit reignites hope in auto-industry turnaround – The Express Tribune

 

[Kompromat]

This is great, #Pakistan does need a robust auto industry of its own.

 

[jarves]

Its too late for Pakistan to build a world class auto industry but it can atleast allow import of crtical parts from India that will help Pakistan to lessen the prices of cars.

 

[guluchulo]

Its too late for Pakistan to build a world class auto industry but it can atleast it can allow import of crtical parts that will help Pakistan to lessen the prices of cars.

To late? Lol

 

[Pakistanisage]

Its too late for Pakistan to build a world class auto industry but it can atleast it can allow import of crtical parts that will help Pakistan to lessen the prices of cars.

Bull Crap. We have a Market of 200 million people and we will build our own Auto Industry. Pakistan should Joint venture with Japan to make quality parts in Pakistan.

Pakistan should stop all trade with India.

 

[jarves]

Bull Crap. We have a Market of 200 million people and we will build our own Auto Industry. Pakistan should Joint venture with Japan to make quality parts in Pakistan.

Doesnt matter how much big market you have,all the world class companies have already there factories in India and no company is fool to open another factory in Pakistan(which doesnt have the infrastructure and climate) and that too of critical parts like engines.

To late? Lol

Yes that is the reality.

 

[guluchulo]

Doesnt matter how much big market you have,all the world class companies have already there factories in India and no company is fool to open another factory in Pakistan(which doesnt have the infrastructure and climate) and that too of critical parts like engines.


Yes that is the reality.

Seriously you guys amaze me. 3rd rate Indian cars also come late in the picture, much later then rest of the world and still crap standard.

 

[Pakistanisage]

Doesnt matter how much big market you have,all the world class companies have already there factories in India and no company is fool to open another factory in Pakistan(which doesnt have the infrastructure and climate) and that too of critical parts like engines.

Don't worry, we will find Solutions to our own Challenges.

You need not stress your feeble brains.

Trust me when I tell you that we want nothing to do with you Indians.

The last thing Pakistan needs is to trade with India.

You are not wanted in Pakistan nor are your Products.

Buzz Off.

And don't let the door hit your stinky behind.

 

[jarves]

Seriously you guys amaze me. 3rd rate Indian cars also come late in the picture, much later then rest of the world and still crap standard.

LOL go and read more about what type of automobiles Indian companies make or are made in India.

You can start it from here.Everything is not covered in this but it will still give you an idea about our industry.......

Made in India Vehicles

Don't worry, we will find Solutions to our own Challenges.

Good luck with that, 65+ years and counting.

 

[SHAMK9]

Its too late for Pakistan to build a world class auto industry but it can atleast it can allow import of crtical parts from India that will help Pakistan to lessen the prices of cars.

wut? crack is very bad for you. Keep your stuff to yourself.

 

[jarves]

wut? crack is very bad for you. Keep your stuff to yourself.

I have already explained that in the above posts,you should counter that with logic instead of doing personal attacks.

 

[American Pakistani]

Nawaz Shareef's name will be written in golden letters if he managed to do this.

He being rich & a powerful politician can do this if he have will.

 

[guluchulo]

LOL go and read more about what type of automobiles Indian companies make or are made in India.

You can start it from here.Everything is not covered in this but it will still give you an idea about our industry.......

Made in India Vehicles


Good luck with that, 65+ years and counting.

And your point being? Pakistan is soon going to cross $300 billion gdp, our maktet is only going to get bigger. Sorry but we don't want your crap, we would rather import cars from muslim countries who are generations ahead of India.

 

[SHAMK9]

I have already explained that in the above posts,you should counter that with logic instead of doing personal attacks.

Your post has nothing to do with Pakistan. Pakistanis would prefer anything better than shitty mehrans.

 

[jarves]

Sorry but we don't want your crap,

Dont embarras yourself,I can post the no. of cars India exported but it is not the right thread to do it.

we would rather import cars from muslim countries

You can do whatever you want.

who are generations ahead of India.

Statistics say otherwise.

Your post has nothing to do with Pakistan.

Read it again.

Pakistanis would prefer anything better than shitty mehrans.

What is Mehran????