Local car companies are still assemblers, claims APDMA

All Pakistan Motor Dealers Association (APDMA) has accused PAAPAM and PAMA of misguiding the government on auto sector, arguing that local car companies are still assemblers and vendors are making the same parts that were manufactured 50 years ago.
In a letter to the Finance Minister, Senator Ishaq Dar, the "self-appointed" Chairman H.M. Shahzad said there are just three makes of automobiles being assembled in Pakistan. PAAPAM and PAMA in their campaigns project themselves as doing something great for the country but if one takes an analytical view of the industry, the fact is that Pakistan is still assemblers and the list of parts being manufactured today by hundreds of vendors shows almost the same parts that were being manufactured in the early sixties.
He further stated that CBUs were allowed to be imported even then. The TR/Gift schemes were in place for as long as one can remember.
According to APDMA, the numbers quoted by the local industry are also aimed at misleading the public and after the government capped the age limit to 3 years with 2 years depreciation in 2012 the used car imports declined to less than half and are declining continuously and have become much more expensive.
APDMA further stated that local assemblers have decidedly failed to take advantage of the situation and neither the production has increased, nor prices reduced. They used this situation to increase their profit by limiting production and increasing bookings at full payment and black marketing in the shape of "own money".
Recently, the government passed on the benefit of the reduced prices of oil to the public; however, these assemblers refused to pass on the benefit of the depreciation of the Japanese yen - a currency that depreciated by almost 40% during the time of the present government from 1.38 to 0.80 to a rupee and has remained so for more than a year.
Local car assemblers, H. M. Shahzad said, are enjoying the increased profits "unashamedly". The ultimate loser is the government which lost billions of rupees in revenues and the consumer who was deprived of his legal right to buy a car of good quality of his choice and affordability and is forced to buy expensive local cars of bad quality with no safety features or accessories to talk of.
According to the Commerce Ministry unchecked import of used cars under three schemes is illegal and measures would be taken to further tighten the schemes if local assemblers assure that prices will not be increased through an oligopolistic behaviour.