Big 3 Continue To Influence The Auto Policy – Ban On Production Of 10 Years Old Models Off The Table

Auto industry of Pakistan

The Big 3 have forced the Government of a damn country into submission. They have forced Chairman Privatization Commission (PC), Muhammad Zubair to withdraw the proposal which made it mandatory for auto assemblers to change their models after every ten years.

Which essentially means that the rest of the auto policy is gone bust as well. They are currently arguing if the auto policy should stay in effect for the next three or five years but it is all irrelevant now. You’ll be stuck with the same crapmobiles you have now.

The Chairman of Privatization Commission was brought into spearhead the new Auto Policy, which is to stay into effect for five years, to replace Minister for Water and Power, and Defence, Khawaja Asif since he is busy with other more pressing matters. The Chairman however was left staggered when auto assemblers and parts manufacturers put pressure on him to withdraw the proposal from the auto policy.

A government official told BR on condition of anonymity, “Auto industry players are so powerful that one cannot confront them. If someone tries to confront them they reciprocate with full force.”

Furthermore, after developing differences with Minister for Industries and Production, Raja Hasan, who was serving as Secretary of Industries and Production was replaced by Ghulam Murtaza Jatoi, who was given a presentation by the Engineering Development Board.

In revelations made to BR by a source close to the CEO of EDB, the government is also considering a reduction in regulatory duty from 50 % to 25 % on cars above 1800cc while both Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM), have also proposed a 25 percent duty on cars above 1800cc, but whether or not FBR will approve such a reduction in regulatory duty, remains to be seen.

Though a proposal was put forward to cut the duty on CKD (Complete-Knockdown) kits to just 25 percent but it wasn’t allowed to progress however, duty on CKD kits will remain 32.5 percent for the first two years and for the last three years in the auto policy, it will be reduced to 27.5 percent.

As everything is in harmony over duty with the motorcycle industry, there will be no change there however, duty on local parts of cars’ will be slashed from 50 percent to 47.5 percent in the first two years and will be reduced to 45 percent in the last three years of the auto policy.

While duty on CKD will be 10 percent for the first two years, for new entrants in the auto industry and after two years, the new entrants will have to meet localization standard of existing auto assemblers who have been here for a long time.

The Big 3 have again used lobbying tactics and their influence on a weak government to have things their way while the Motor Dealer Association have asked if auto assemblers aren’t forced to stop producing ten years old crap, than they should also be allowed to import ten years old crap.

Source: Business Recorder

Baber K. Khan

An auto enthusiast trying to bring car media mainstream.

  • Gemini

    It’s not their fault our people are addicted of getting ripped, If the same was happened in any other country people would have thrown these cars in the face of these dealers.

  • Rosh

    big 3 must have deposited millions of dollars in these ministers swiss accounts and here goes the policy according to their wishes. I believe that these ministers were never serious about change in policy rather they have created all this hype to increase the numbers of millions they will get.

  • wesmalik

    Why would 2 of the Big 3 be concerned with production of 10 year old plus models of automobiles, the only one who does is Suzuki. Toyota and Honda change models very close to worldwide counterparts.

  • Aamir Bashir

    well exactly if they are selling 10 yrs old crap in the show rooms so then the Govt. should allow the importers to import 10 yrs old car at least it would benefit the public as those imported cars would be much better then pakistani models lolzzz and you can buy them cheap as well

  • Baber

    The influence is exerted through PAMA or PAAPAM. It is a collected effort with; you watch my back and I watch yours AFAIK.

    Then you read how things work here in the auto industry. https://www.pakwheels.com/blog/heres-new-entrants-cannot-sustain-automotive-industry-pakistan/

  • anon

    why dont you start,,, all of us will follow

  • aliqadri

    Nice idea 🙂

  • munib

    Rightly said

  • Ahmed

    Not buying a local car ever. The type of stuff we get with a 10 lac JDM will be here by the year 2050 haha!

  • Adnan

    i have seen in our country on every upset down come and submit petition against… but in AUTO policy.. no one stand on it…!!!! weather on Old models or on new commerce…. WHY is that..!!!! every one wants to have fully loaded & powerful wheels.. but no one stand against it…!!! WHY..!!!!

  • Driver of an imported car

    Well this was expected. if any of the member (directly or indirectly related) to Big 3 MORONS is reading this, I have got two words for you: SCREW YOU! This is what you have learned in your education, to play unfair with the people of your own country by being puppets of MNCs. Big moment of shame for all of you. Proven: MONEY is the real thing, education, feelings, fair decision making and most importantly learning and upbringing of parents can be easily set aside if the sum of MONEY being offered is lucrative. Keep it up brothers! You have just made yourself and your families proud! 🙂

  • Saad

    FAW Rocks…. BIG-3 Shocks……………… WILL BE<<<<<<<<<<<< FAW is organizing Car Plant in Karachi….

  • Capitalism has taken the shape of cruelty.The big 3 rather be called the selfish bunch c0-hand with a tooth less Govt is all set to fleece the people of their hard earned money.Shame on Honda,Indus motors and worst of all pak_suzuki and Ministry of Industies full of petty minded officials may be called Looters rather Scoundrels of Industry.
    Take a lesson from TATA,s nano,the poor mans car in India.

  • Sorry brother the bad(BIG)2 are following the foot steps of pak-suzuki.Honda city,s Model is 8 years old now.And in US the civic is not the same as in Pakistan.

  • Max Central

    I criticism govt of Pakistan. As we know that govt is not reducing the fuel prices because of their hidden 40% fuel revenue sharing agreement (if price remains above Rs 60 / litre), it is possible that govt should have made similar hidden agreements with Toyota and Suzuki also (all govt officials and security personnel gets these cars only NOT Hondas – means Honda is clean not involved in any hidden deal). People should boycott all cars from these 2 car makers (Toyota and Suzuki). People should criticize and humiliate the owners of these cars, especially Corolla owners who are paying 1.7 mio for XLI and 1.9 mio for GLI manual and helping the govt and corrupt mafia.

  • Aamir Bashir

    I doubt it 🙂

  • Farrukh Sayyar

    The big three are big thieves .All local cars are substandard and high prices.Toyota corolaa has a black market of Pkr 180,000 and waiting time of 5 months.No where in the world is this seen.

Top