CCP endorses used car imports and age limit increase to 5 years to break the monopoly of local automakers

imported cars

ISLAMABAD: The Competition Commission of Pakistan (CCP) has endorsed open import of used cars, as well as the notion to increase the age limit of imported vehicles from the existing three years to five years in an effort to break the monopoly of local car assemblers.

In a recent study, CCP found that there is no fair competition in the local industry and the policies of the government are there to protect the big three local automakers at the expense of consumers.

The CCP has also suggested the government to withdraw the three controversial Statutory Regulatory Orders (SROs) that protect the existing players by restricting new automakers to enter the industry. Such as the SRO 639 of 2006 which imposes several conditions such as the new entrant should localize the parts within three years of operations and pay high duties for their CKDs and other parts.

The draft of the study was made public by CCP at a time when the government is in the process of making the new auto policy.

It is also mentioned in the study how the three core players in the industry do not maintain quality and safety standards of the vehicles as compared to the same models internationally, while charging exorbitant prices.

The study also emphasizes that with the end of monopoly in the local market, many foreign investors would show interest in the auto sector of the country, as with the current policies, the foreign investors are least bothered, the result being less choices for the consumers. This is also necessary to bring new technology in a country as the current technology used is at least 20 years old.

You can download and read the full report from CCP by clicking here.

 

Fazal Gilani

A former news reporter for Samaa TV, who is currently working as an assignment editor at channel24/city41 & a freelance journalist. He has a Masters degrees in Mass Communication & International Relations. He tweets as @Gilaniism. He Blogs at www.fazalgilani.com

  • Heder Aziz

    Does this mean that a person can import a five year old car, starting now, just a question? Is this official?

  • Haris Khan

    Instead of allowing people to import other country’s junk, govt and CCP should revisit their policies and make room for new manufacturers to have an equal chance in this market. See the neighbor for example. They have Hyundai, Skoda, Honda, Suzuki, Volks Wagon, Mercedes, BMW, Audi, Tata, Mahindra, Fiat, GM..how many should i name??

  • Abdul Moiz

    When will this policy be introduced

  • Amer

    @Haris I am totally agree with you, but until we don’t have new manufactures,,, we must be able to import.As other country’s junk too faaaaaaar better than our new vehicles 🙂

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