India has shown keen interest for collaboration with Pakistan in all the sectors of the automobile industry, it is reliably learnt. Society of Indian Automobile Manufacturers (SIAM) initially wants to hold an automotive exhibition in Pakistan sometime in December in Lahore. Indian offer has been conveyed accordingly.
SIAM in its detailed letter to Pakistan Automobile Manufacturers Association (Pama) has explained aims and objectives of the exhibition. It is reported that SIAM wants this show in Pakistan in association with Pama and also Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam), which will display the entire range of vehicles, components and accessories.
The Pama is actively considering the proposal received from SIAM to organise a joint automobile show in Lahore in December.
The salient features of the show as proposed by SIAM are display of all ranges of vehicles and products, alternative fuel technologies, vintage car rally and holding of seminars.
Pama Chairman Kunwar Idrees responded positively to SIAM, but in his letter he expressed concern that Pakistan's small and growing auto industry though may gain from India, may also get "swamped by it".
Pama has constituted a committee of its members from all the sectors of the auto industry to prepare an outline and timeframe of talks with SIAM.
Industry sources said that the concern voiced by the Pama chairman is real. If manufactured automobiles are allowed to be imported from India it would hurt the interest of some major car manufacturers who are selling cars at exorbitant prices. Similarly, India can swamp the market with its cheaper spare parts, which will hurt the local parts manufacturers.
Market sources said that some tractor manufacturers as well as automobile manufacturers and especially the spare parts dealers were already importing parts from India via Dubai and Sharjah after alleged under-invoicing. Should the negative list now prevailing be withdrawn, it would legalise the trade, the sources said.
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