Reference the letter by Saleem Mahmood titled, 'Facts about auto industry' that has appeared in your prestigious publication on August 6, I would like to share my views on the subject and point to certain self-contradictory facts.
One wonders that if local manufacturers have failed to satisfy the customers, how is it that the local car sales have posted an impressive growth of 22 percent higher compared to the preceding year?
Notwithstanding that the import of cars has increased in 2005-2006, owing to the relaxation of baggage rules for overseas Pakistanis, there is a growing discontent among the buyers of these 'used' cars.
Unlike locally manufactured vehicles, spare parts are not readily available due to which users face severe problems in the case of breakdowns.
Also after-sales service is non-existent with no warranties provided to the detriment of the buyers. The main culprits behind these miseries of a common buyer are greedy second-hand car dealers, who have misused the opportunity of Personal Baggage and Gift Schemes.
The local auto industry has recorded an average of 35% growth per annum for the last four years. Production has gone up from 45,000 cars to over 200,000 cars in the same period. The industry is targeting to raise its output from the current 215,000 units per annum to half a million by 2011-2012. One needs to understand that developing an infrastructure to increase the capacity cannot be done overnight, it takes a considerable investment, hiring and training of manpower, developing local auto parts, transferring of technology, amount of capital and a certain stretch of time to do so.
I agree on the suggestion of a regulatory body for the auto industry and it should be welcomed as it is in the interest of the customers.
The benefit is also that it would silence the fake whistle blowers and bring forth the realities about the available customer service offered by the local automakers. Further, it will expose the malpractices of used car dealers and their huge margins due to under invoicing.
Around the globe, the home industry is lent support for the sake of long-term benefits in the interest economic development. Imports are always the last resort as they are a drain on the country's precious foreign exchange reserves.
We should not overlook the fact that 400,000 people are employed in the auto industry. If with increasing imports, the demand for local cars dwindles, it would result in plant closures and loss of jobs. No one with a genuine interest in the country and its people will want a situation like that to happen.