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, PakWheels.com, 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.
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 PakWheels.com 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.