Government should commercialize used car import: Importers

Competition Commission of Pakistan (CCP) conducted an open hearing session on competition and consumer issues on 12-4-2018 (Thursday). In the previous articles, we have discussed in detail that how local automakers responded to the questions asked by consumers,, and other concerned authorities at the hearing. In this write-up, we will be reporting what used cars importers told CCP.

Many representatives of used car importers were present at the meeting. Almost all of them expressed their concerns over government’s overnight issued SROs such as SRO 1067(1)/2017, which damaged their business a lot. However, it is to be noted here that government has already declared SRO 1067 invalid.

Read Also: 8 new automakers got the permit to enter into Pakistan auto industry

While speaking at the event, the representatives of used car importers said that government should help them and commercialize the used car import, so that they import car easily as of now they import vehicles under schemes such as baggage, gift, and transfer of residence, which is made for overseas Pakistanis. If the government of Pakistan commercializes the used car import, we can give consumers cars as cheap as Suzuki Mehran with much features, the importer added.

Many importers criticised the local automakers for pressurizing the authorities to make strict laws for importing used cars into the country; however, this was contested by CEO Indus Motors Mr. Jamali. He said the notion which used car importers are giving is entirely wrong.

Moving onward, it was revealed at the hearing that after the oil sector, used car import is the second largest contributor in GDP of the country. In 2017 used car import contributed 63 billion in the GDP.

One of the used car importers said that they are not only contributing billions into the national economy but also giving cars with many features to consumers compared to locally produced cars; similarly, they are also bridging the gap between supply and demand.

The current need of cars in Pakistan is over 500,000, but local automakers only cater to the need of half of them, so there should be other means to minimize the gap, he further added.

80,000 cars were imported in 2017, and if government help us we can fully eradicate the gap between supply and demand, the importers explicitly told CCP.

Mr. Aamir Allahwala and Javed Sheikh represented PAAPAM and presented the case of auto part manufacturers in the open hearing. Mr. Allahwala in the meeting said that commercializing used car import business would be harmful to country’s auto parts makers.

Mr. Suneel Sarfraz Munj Chairman was also present there; he presented the idea that government should make policy which benefits all stakeholders not just one segment of the industry. Automakers and importers are essential stakeholders in the industry, and neither of them should be neglected, he asserted.

That’s it from our side, drop your thoughts in the comments section below.

My name is M. Ali Laghari and I love to read and write about Cars.

Notable Replies

  1. Why don't auto parts makers also start making auto parts for used JDM vehicles, which are " :v: Market ki Garis :v: "? :sunglasses:
    Ye b khush, used cars importers b khush, and awaam ka b bhala, k unn k kabar khaanas k chakkar khatam! :wink:
    Used Cars Importers ka karobaar to khatam na karein Na!


    Iss tarha ye baat b puri ho jye gee!

  2. imported garriyan band karni hain to karo but us waqt karna jab Nissan Dayz jesi garriyan mulk main bana lo, ya kam se kam koi car pakistani manufactured launch na kar lo,, awam ko koi to dhang ki cheez do, i think 2019 main band karny ka soch skty hain jo new comers hain unko new technology lanay ke liye encourage karna chahiye..

  3. aa78 says:

    Legal commercial imports should be encouraged since it is part of documented economy.

    Also, till each local manufacturer has standing car inventory of at least 2 months worth of sales for each model, all being available on ready delivery, government should encourage imports since it is not harming nor denting sales of non-existent inventory of local assemblers. It is also a deterrent against excessive prices and low features forced by local assemblers on the hard working public.

  4. When cars as cheap as Mehran will be imported then their will be some change in the market. Prices will fall by a great margin but the big three and the "HARAM KHORE POLITICIAN" can't bear small profits from the market. Nothing will change until some one kicks the monopoly in the a$$ and end all the games being played on becharey awam.

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