MULTAN (July 17 2010): President of Multan Chamber of Commerce & Industry (MCCI) Malik Asrar Ahmed Awan has expressed his concern over government's intention to allow the import of used cars and increasing their age limits from three years to five years. Awan appealed to the government to halt import of used cars and stated that auto manufacturers' tremendous growth in local industry could never be achieved in the presence of the business of import of used cars.
He stated that the local auto industry is sharing an important role in the country's growth by providing employment to over 2,000 people directly and 150,000 people indirectly. He said that the auto manufacturers are asking the government to limit the import of second-hand cars two years old only. However, it does not seem to be happening because the government authorities seem more interested in allowing the import of used cars up to five years old.
The prime minister had stated that import of used cars should be allowed and a later statement of the Minister for Industries and Production also appeared in a section of news hinting the allowance of import of used cars. Conversely, the local auto manufacturers are striving to convey their message to the ministry of industries and production and they appealed to the government for consideration of their demands. He also said that the industry has contributed over Rs 19 billion towards national exchequer, and has purchased more than Rs 15 billion worth local parts to develop self-reliance.
To enhance industry's production capacity, manufacturers have invested Rs 1.6 billion in addition to Rs 3.3 billion already invested over the last three years. It added that the local automobile industry contributes larger share towards the documented economy through government levies and taxes, as compared to the trade of the import of the used cars. It is worth mentioning that car sales jumped by 50 percent in 2009-10, sales had declined by eight percent in 2007-08 and further fell to 47 percent in 2008-09.
However, the industry had started to recover in 2009-10 but was still below the level of its peak year ie 2006-07. Similarly, the production of cars has also witnessed an impressive growth of 44 percent during 2009-10. An analyst of the sector said that the relaxation in conditions would allow more players in the market. This would not have an immediate effect, but in the medium and long term this would give more choices to the consumers at affordable prices.
He stated that the local auto industry is sharing an important role in the country's growth by providing employment to over 2,000 people directly and 150,000 people indirectly. He said that the auto manufacturers are asking the government to limit the import of second-hand cars two years old only. However, it does not seem to be happening because the government authorities seem more interested in allowing the import of used cars up to five years old.
The prime minister had stated that import of used cars should be allowed and a later statement of the Minister for Industries and Production also appeared in a section of news hinting the allowance of import of used cars. Conversely, the local auto manufacturers are striving to convey their message to the ministry of industries and production and they appealed to the government for consideration of their demands. He also said that the industry has contributed over Rs 19 billion towards national exchequer, and has purchased more than Rs 15 billion worth local parts to develop self-reliance.
To enhance industry's production capacity, manufacturers have invested Rs 1.6 billion in addition to Rs 3.3 billion already invested over the last three years. It added that the local automobile industry contributes larger share towards the documented economy through government levies and taxes, as compared to the trade of the import of the used cars. It is worth mentioning that car sales jumped by 50 percent in 2009-10, sales had declined by eight percent in 2007-08 and further fell to 47 percent in 2008-09.
However, the industry had started to recover in 2009-10 but was still below the level of its peak year ie 2006-07. Similarly, the production of cars has also witnessed an impressive growth of 44 percent during 2009-10. An analyst of the sector said that the relaxation in conditions would allow more players in the market. This would not have an immediate effect, but in the medium and long term this would give more choices to the consumers at affordable prices.
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