Pakistan Approves The New Auto Policy For The Next Five Years

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After remaining pending for more than two and a half years, the Economic Coordination Committee (ECC) of the federal cabinet have approved the ‘Automobile Development Policy 2016-21’, as announced by the Ministry of Finance. The policy will formally be introduced on Monday, the 21st of March 2016.

The new automobile policy will offer tax incentives to new entrants in order to help them establish manufacturing units in Pakistan and effectively compete with the existing three assemblers, who are operating since the early 90s.

“The policy is aimed at enhancing consumer welfare and boosting competition besides attracting new players. The existing three car manufacturers will not be entitled to the benefits that are being offered to the new investors.” said Miftah Ismail, Chairman of the Board of Investment. He also said greater localization of auto parts had been ensured in the policy and in case the new entrants were unable to achieve the targets, they would be penalized.

Contrary to the demand of Volkswagen group, the definition of medium knocked-down unit has been eliminated from the policy. The government desires that Fiat, Audi or Volkswagen should establish its plant in the country, which is a positive initiative by our government.

VW

Incentives as per the Auto Policy:
A major incentive for the new investors is reduced 10% customs duty on non-localized parts for five years against the current 32.5%. For investors, the duty will be slashed by 2.5% to just 30% from the new fiscal year of 2016-17.

Beginning from July, the localized parts can be imported by the new entrants at 25% duty compared to the current 50% for five years. For existing players, the duty on import of localized parts will be brought down to 45% from the new fiscal year.

The government has allowed one-off duty-free import of plant and machinery for setting up an assembly and manufacturing facility. It has also permitted import of 100 vehicles of the same variants in the form of completely built units (CBUs) at 50% of the prevailing duty for test marketing after the groundbreaking of the project.

Another important point is in the CBU category, customs duty on cars up to 1,800cc engine capacity has been reduced by 10% for two years – 2017-18 and 2018-19. This will be applicable to the existing players as well and will encourage reduction in car prices. Also a single duty rate will be applied to the localized and non-localized parts after 5 years of the new policy. The present duty structure will continue for 7 years for the new investors.

For revival of sick or non-operational units, the non-localized parts can be imported at 10% and localized parts at 25% duty for three years for the revival of a sick unit. The government however, did not change its policy for used car imports, leaving consumers with a limited range of choice until new brands of good quality are produced in the domestic market.

Big108

There were high hopes among the auto consumers of the country regarding the automobile policy and so far it seems quite encouraging for new assemblers. The existing trio of Japanese assemblers is long blamed for selling low-quality vehicles to consumers at high prices. By bringing in more manufacturers here, and developing competition in the industry in fair means, one can foresee better days ahead for the growth and progress of our automobile industry.

The policy should also push the existing players to improve their quality and product lineup because that’s the only thing which will keep them ahead among the competitors in coming years. It will take a few years for any new comer to establish its plant here, till that time it will be interesting to see whether the existing assemblers of our country are prepared for the upcoming competition or not.

Possible manufacturers that might enter our market are Audi, Volkswagen, Fiat, Renault, Nissan, Hyundai, Kia, while Zotye, JAC, Changan, Geely and Chery among the Chinese.

 

Usman Ansari

An automotive enthusiast associated with the animation industry since 15 years having worked with leading organizations and production facilities across Pakistan.

  • Guest

    “The government however, did not change its policy for used car imports, leaving consumers with a limited range of choice until new brands of good quality are produced in the domestic market.”

    It is good because if imports were further loosened, any new entrants coming to setup their tools & plant would forecast a longer time for ROI, thus would have found less incentive to setup their tools and plant.

    On the other hand, government could have made some safety features like ABS, collapsible steering column etc. compulsory. This would be a big step to remove obsolete cars from the mix, makes the competition ground more level, and force the old and new entrants to introduce only modern or only slightly older models.

  • khan bhai

    Govt Approved the Policy for next FIVE YEARS not Three years
    Correct your figures
    I don’t know where the admins are sleeping…

  • M.B

    There is no mention for emission standards in the policy neither there is any clause determining the life span of a specific model after which it should be either discontinued or upgraded.

  • Muhammad Yasir

    agree with both your points

  • Muhammad Yasir

    “The existing three car manufacturers will not be entitled to the benefits that are being offered to the new investors.”

    HAHAAHHA !
    take that shitzuki , pathetic honda and crappy toyota !

    I really hope to see some well priced cars !

    “Possible manufacturers that might enter our market are Audi, Volkswagen, Fiat, Renault, Nissan, Hyundai, Kia, while Zotye, JAC, Changan, Geely and Chery among the Chinese.”

    OH BOYEEE ! THE HYPE TRAIN HAS STARTED OPERATIONS ! all like-minded are WELCOME Aboard !

  • Imran

    Those 3 have looted us a lot, we hope to end a looting era.

  • Usman Ansari

    That’s purely an editorial error upon which author has no control whatsoever. I apologize for the error on behalf of PW

  • Engineer Kamran Khan Niazi

    After 1.5 years, Japanese Used cars will get POOR RESALE VALUE…………… Mira so called available for 10 lacs will be hardly sold at 4.5 lacs. Datsun Go , Datsun Go plus, Hyundai i 10 , Alto K 10, Celerio , Faw V2, aw Olley, Faw Bestuen , Zoytee 1.0 , Volkswagon cars are COMING SOON

  • TIP

    Great effort indeed.

  • Kashif Akbar

    We appreciate the Govt. for making it as per the choice of people. Now its upto industry as how the react to it. one thing is sure, the company who takes the lead in setting up and making the product available for sale will get a great benefit. we are sick of current junk-yards, and once we see an option, people will give great respect and purchase. i am sure within next six months one of the brand like NISSAN will take the lead to offer a full product range.

  • ulhaqanwaar

    We are listening to this bullshit since a decade but no German or Korean manufacturer came to Pakistan. Please bring Audi, VW and Nissan that would be great we will never give a shit about Toyota, Honda or Suzuki

  • Jayy Khan

    No wonder Indus motor recently offered alot of upgrades, Hum bhonk rahe the ke atleast grande mai climate control and immobilizer dede but no, I cant wait for Suzuki to go out of business and discontinue crappy mehran and bolan, swift is good, now its upto us to buy the german cars compared to this crap toyota and suzuki, I bought my Grande 12 days ago and I can already hear noise coming from sunroof and driver side door + the door alignment isnt right either..

  • Jayy Khan

    Now its upto us to go for the New car entrants rather then crappy Mehran and Bolan.

  • Muhammad Yasir

    exactly !

  • Muhammad Yasir

    wow … how rich are u exactly 😀 ?

  • Muhammad Yasir

    yep … lets see how much the people have awoken and how many are still imbeciles

  • paki

    Pakistani’s are in love with German brands specially cars and One wonders that why German car brands don’t come to Pakistan are they being bribed heavily by Japanese trio to not come here ??

    Germans have basically left the money on table for last 4 decades by not launching their cars in Pakistan.

  • Hello

    We have 2 new Corolla and Honda in the family and I’ll personally sell them for next to nothing to upgrade to german cars.

  • Hassan Shahid

    I think Volkswagen’s Jetta and Nissan’s Altima will compete with Civic and Corrolla. Nissan’s Sentra might compete with Honda City but Sentra sucks. Audi’s will become the premier luxury brand then as oppose to Mercedes which is the most popular German brand in Pak..

  • Usman Ansari

    VW because policy itself is developed to favor them.
    Fiat has already been in talks with govt.
    Revival of sick units is specially included to bring back Dewan in business, as Dewan group has good ties with ruling party. Hence Kia & Hyundai. Gandhara Nissan plant wil also get favored hence Datsun/ Nissan & Renault.
    Chery has already signed technical collaboration agreement with Karakoram motors.
    Zotye is in colla
    boration with Raja group.
    JAC has already a truck assembly plant with Afzal motors.
    Geely has plans to comeback as I was told by Geely’s autopart dealer. They were waiting for auto policy.
    Hype is not just hype 🙂 look ahead the future is bright.

  • Sleepless

    I am willing to buy them for next to nothing.

  • i Am waiting for volkswagen Passat

  • Jayy Khan

    Lol what makes u think that I’m rich?

  • haris

    the key for success of these companies would be if they can offer a cheaper car then a mehran 😛

  • Irtiza

    you just said that you bought a Grande.

  • gaatif

    Mehran comes without a simple cassette player. Bolan and Ravi are the lightest piece of crap we can see running (and loaded) on road. Suzuki vehicles don’t have reliable brakes.
    Xli comes without power window and ABS.

    No check & balance by govt. to validate what these manufacturers are selling against so much amount.

  • Sami Siddiqui

    Altima is the D Segment car. This means it is equivalent in size of Honda Acccord, Ford Fusion and Toyota Camry. Nissan Sentra can rival Corolla and Civic.

  • Muhammad Yasir

    Audi aint exactly cheap … and the Grande is what … 1.6 mil and above?

  • Muhammad Yasir

    Thanks a million Mr.Usman !

    these are some great points … i was actually looking forward to more details w.r.t each and every upcoming automaker’s perspective !

    thanks for the insight ! i really hope to see some great and well-priced cars AND an instantaneous growth in the population of the ACTUAL BUDGET CATEGORY of Automobiles in Pakistan !

  • Muhammad Yasir

    exactly 😀 !

  • Muhammad Yasir

    well said

  • Muhammad Yasir

    and they cost so DISGUSTINGLY HIGH :@ !

  • Muhammad Yasir

    EXACTLY !
    the first one to populate Pakistan’s TRUE budget category of cars ( cars costing WELL under 0.3 mil PKR ) will be the people’s darling and front runner in the market as well !

  • Muhammad Yasir

    im willing to buy at least one of them .. whats your demand ?
    (im a student so go easy on mee )

  • Muhammad Yasir

    what are sick units , Usman bhai ?

  • gaatif

    Because people pay, not just the price but other charges like freight also.
    Suzuki didn’t bother to change or improve the design of Mehran, Cultus, Bolan or Ravi, because they didn’t need that – they are already ruling the market.

  • Muhammad Yasir

    and thats just sad !
    blindly paying instead of searching and appealing/protesting for better value for money and innovations !

  • Usman Ansari

    Sick units r those plants which are no longer operational. Like Dewan’s plant in Sajawal. And Gandhara’s plant as well. Both use to assemble vehicles but not today. This policy aims to get these plants back on track which is a good step.

  • وجاہت علی

    well ppl keep ur hopes high may be its about time to say good bye to mehran..

  • Muhammad Yasir

    hmm .. looks good then !
    hopefully this’ll mean something good for overall national productivity as well !

    cant wait for them Automakers tho !

  • NIKHIL KULKARNI

    You guys think German brands will come and just conquer the market and Japs will sit quietly ?? Wait and watch..!

  • Azeem waqar

    volks weagon reply to me weather they are coming to pakistan

  • Usman

    This is good news thanks for sharing!

  • Ehs

    Good news. Indeed it’s a positive step and something good coming from the government after a long time in this sector.

    However there are still some serious concerns in the policy

    1. The policy does not enforce safety standards.Minimum Dual Airbags, Abs, immobilizer,reat seat belts, structural safety standards, crash test rating must be made compulsory.
    2. Initially MKDs should have been allowed as requested by Volkswagen for some time.
    3. There should be a ban on obsolete models so that assenblers are forced to replace. Offerings should be in line with international market.
    4. No model should be allowed to be sold over a particular number of years (max 7-10)
    6. Modern Euro 5 emission standards should be adopted. We are still not fully compliant with Euro 2 even now.
    7. Policy must include a strategy to focus on exports. This will immensely benefit the economy, create jobs and bring in revenue. Pakistan has a huge population which should be utilized to develop a strong manufacturing sector.

    steps must be taken towards developing a strong automotive industry that’s benefits our economy and consumers not one that focuses on Japanese interests only as in the past.

    InshAllah our economy will progress and more jobs will be created.

  • Smokingaces

    I think Nissan Sentra is more in the class of Corolla than Altima

  • Hassan Shahid

    Yes you guys are right,I made a mistake. Nissan Sentra and Volkswagen Jetta will compete with Corolla and Civic. Nissan Versa is the compact sedan that will compete with Honda City. Jetta I personally believe is a far superior product to Corolla but it has the same build quality as Civic. Civic however being the Japanese car will have much greater reliability. German cars are notorious for reliability issues. Over here even in the USA car dealerships create a lot of problems when trying to fix issues with cars,I can only imagine how badly the dealerships in Pakistan will handle it when we have problems in the German cars,most people do a lot fraud in this.

  • Hassan Shahid

    I would be very careful switching to German cars,they have MASSIVE reliability issues! I own a BMW 5 series so believe me I know what I’m talking about!

  • Jayy Khan

    Lol nah bra I wouldn’t call myself rich, I just enjoy with whatever I have and my bank account stays low most of the times.

  • Guest again

    There is no clause for determining the lifespan for any model in any country.

    The government just raises the bar (for safety, quality, fuel efficiency, emissions, etc.). The bar is raised for a specific reason which is improvement in quality of life, because government is supposed to protect the interests of their citizens, residents and tourists.

    After raising of the bar (=new regulation), cars which cannot meet those requirements go out of production. It is simple as that.

  • Guest yet again

    People are overrating and over-ranting about German cars.

    1. They will be more expensive to buy.
    2. They will be more expensive to maintain.
    3. They have much more planned obsolesence built into them.
    4. Even scrap yard parts are more expensive.
    5. They are heavier.
    6. Alterations are very difficult, whereas it is easier with Japanese car.
    7. German cars are very complex (mechanical and electrical system). For mechanics who cannot even understand the vacuum diagram of charade or Khyber, understanding a German car will be impossible. There are select few workshops who have literate mechanics and proper tools but they are very very expensive. As soon as the number of German cars increase, their prices will go even higher and they will have long waiting lists, means more downtime.
    8. Japanese cars are very reliable. The build quality of Suzuki, Honda, Toyota – locally built ones – becomes worse everyday, but still it is a fact that you will never find any new Toyota or Honda (local assembled) stranded somewhere. Never find that it refuses to start in the morning. Engine assembly of Pakistani workmen is much better than others (not as good as Japanese or German but better than many who are in the neighboring countries). People face small problems like doors or windows making noise or slight wobbling, or some random sound from the steering cross.

    We should be looking for respawning of oldie goldies like Nissan, Hyundai.

  • Kamran Usman

    Please stop spreading fear, uncertainty and doubts (aka FUD).. German cars are not space shuttles.. they are just like any other car. In fact, if you ever come to Germany, Volkswagen cars are like Suzuki in Pakistan… the most common car… it’s technology is just like any other modern car and mechanics can be easily trained as most repairs are electronically managed by devices which are easy to use and manage.

  • hi gust

    How many Germans cars have you owned ? I’ve owned 3 German cars and let me tell you they are 100x more reliable then your Japanese cra*p.

  • Zulfiqar Ali Soomro

    you are talking about XLi even GLi is crap. Its not value for money what they are offering.

  • Zulfiqar Ali Soomro

    KHOTA COROLLA bc

  • Zulfiqar Ali Soomro

    I thought Grande was worth buying in the Corolla flagship. Might compete with the quality of a Civic but whats this lol

  • Zulfiqar Ali Soomro

    Hey what about the latest Hyundai Verna?

  • Zulfiqar Ali Soomro

    Grande is like 2mil+

  • Zulfiqar Ali Soomro

    can you share a picture of the Zoyte car you are talking about?

  • gaatif

    Imported cars may have created some competition but the imposed duty increased their price too.
    Secondly, we think more about re-sale and spare parts than the comfort and safety features of the vehicle.

  • gaatif

    Shape of low end corolla (XLi) and high end corolla (Altis) is same, who would spend almost double for Altis if they can get the same “image” in XLi?

  • Zulfiqar Ali Soomro

    yes exactly! there’s this friend I have, calls himself an “auto enthusiast” but wouldn’t stop buying this piece of shit. Basically owns 4 cars of which 3 are Corollas, when asked why do you buy them, being an “auto enthusiast” and all the answer I got was “yar resale ki waja se.” *facepalm and lanat to my own face*

  • Zulfiqar Ali Soomro

    I think Altis is better in terms of comfort and drive pleasure. The old one certainly is, the 1.6 one. But I just saw someone complain about the new one on this forum… Seems like the new model is shit from XLi to Altis..

  • Aqeel Zia Nayyer

    german cars = unreliable – you mean the beamer? the Audi? the Merc?

  • Aqeel Zia Nayyer

    bhai sari jaga per aisy hi hota hy. bmw daikh lo. difference ni hota engine variant main

  • Aqeel Zia Nayyer

    mehran .7M ki aur naya model nai shape well build car in .3M :/

  • Kami

    I think you are someone from the existing manufacturers :)))

  • munib

    Great . .

  • gaatif

    no comparison of BMW and Toyota, even Honda is way better than Toyota in local models.
    BMW doesn’t sell crap for money. There are dozens of features in BMW which local buyers can’t expect from Toyota Indus (local market).

  • Gemini

    LOL seems like there are days of sorrow and sadness begins for Big Three. No matter what happens at least they will take care of customer safety and definitely going to install air bags in their cars.

  • JDM Tuner

    German German krne walon k liye bta don k, Honda has been most reliable and affordable car reported by Top Gear surveys. You ppl mus know Top Gear if you are car enthusiast.

    No doubt German cars are good. But “guest yet again” is right about cost and maintenance issues.

    Also if you are street racing fan, try making your German car street racer compared to Honda

    Little that you know imbeciles.

  • Muhammad Yasir

    so confirms the nature of my original question 😀

  • Muhammad Yasir

    haha … what do u do for a living 😀 ?

  • Muhammad Yasir

    so ?
    this is called innovation and market smarts ?

    if everybody owned your mindset … we would still have vacuum tube computers and other ancient devices slowing us down !

    if India can make a car costing UNDER 2 Lacs in THEIR local currency … then WHY the hell can’t WE make one as well , esp as the policy is ESPECIALLY AIMED at making the TOTAL manufacture of cars ENTIRELY LOCAL !

    so yes , its valid to hope for outrageously cheap cars if they’re made locally ! and the govt should cater to the student and budget class !

  • Jayy Khan

    too many questions bro.. Lets say my father provided me a chunk as well as my late grand-dad.

  • Jayy Khan

    exactly..

  • Jayy Khan

    No I dont think so.. the fight will be tough.. I am just on about the quality of vehicles we are getting by suzuki and toyota. tho I really hope for germans to achieve big and provide us awesome cars

  • shelmak

    Germans are the best in Mechanical/Automotive Engineering.

  • shelmak

    You are not considering the technical aspects of cars. Go compare the technical aspects. Try to study the Automotive mechanics.

  • shelmak

    Because they are Germans and there is not a single nation which can beat them. You will get the meaning of this only if you know the scientific history.

  • Muhammad Yasir

    sorry … i was just being curious.

  • Farhan Khan

    Bureaucrats were fed to their teeth ($$$) by those big three for delaying this policy… But, it had to come out some day, and now it has

  • Ali Hasnain

    German cars are only for car enthusiasts. They are more comfortable, luxurious, solid materials and so charming and good feel as compared to Japanese cars.If you see German cars properly they have totally different attraction.. So as you want comfort, feeling, pleasure so you have to pay for it.. Said by people:
    Hathi palney ke liye ghar ke darwazey Barey karne parte hain..

  • Hassan Shahid

    I have never driven a Hyundai Verna so I cannot comment on the quality of the car. The Corolla is probably more reliable but I cannot comment on the build quality of Verna,I’m thinking the quality of materials used will be very similar to Corolla. The only thing is that maybe Verna will not have a very good resale value while Corolla always retains its value!

  • Jayy Khan

    I own marble factories and a soap stone factory, + recently I started investing in transport too coz Mr. Prmie Minister made things hard for businesses and we need multiple things to get things running.

  • Jayy Khan

    Also it’s not about how u earn it, it’s about how u spend it. I like to make the most with whatever I have.

  • eaglehide

    Most of the points you have mentioned are applicable on the local builds as well. This is exactly the kind of thinking that gets you stuck at one point and prevents you from moving forward.

  • Guest another time

    They are best at value engineering = planned osbolesence too. Which they can afford because they are an advanced economy but Pakistan cannot.

  • Guest another time

    100% true that a German car manufactured by Germans in Germany would be better than a Toyota manufactured by Pakistanis in Pakistan.

    But for how many years and over how many millions of km? People own German cars for a few years and then decide they should get rid of it because it is taking too much money.

    You still see that Chamber Suzuki (2-stroke) delivering your local grocery like it did when it was new.
    But you never see the Mercedes of that era transporting kids to the school like it did when it new (in those days usually the grandfather of the house had a car).

    You still see those Bedford (British) buses that came in the time of Ayub Khan. And those buses are workhorses piling up miles everyday nonstop.
    But you don’t see the MAN, Mercedes, Scania and Volvo gifted by other countries.

    German cars used to be reliable but not durable. And today they are not even reliable. Previously they guaranteed availability of spare parts for 15 years, now it is for 6 years only. Because they come with planned obsolesence, you know. It is disposable after 8 years.

    Just because those oldies like W140 were goldies doesn’t mean recent models also are.

    And Audi kaheen aur jay na jay workshop zarur jay.

  • Guest another time

    Yes.

  • Muhammad Yasir

    well … that’s Pakistan for you , making everything difficult for business men , traders and any other similar individuals since 1948 😀

    anyhow , take care bro 🙂

  • Guest another time

    You should reconsider your thinking. I have lauded the return of Nissan and Hyundai. Now Nissan comes from Japan and Hyundai from Korea.
    I just made a statement that har chamakti chex sona nhe aur apne halat dekh kar faisla karna chye.

  • Muhammad Yasir

    hmmm … true

  • Guest

    Not at all. Corolla has no planned obsolesence built into it. Spare parts of Corolla do not become so expensive that at one time, you would consider buying a new car is worthwhile compared to repairing the old one.

    You can easily fit a Khyber engine into Margalla. You can easily interchange the steering assembly of many Japanese cars. You can alter the radiator if you need. You can fit another A/C. If the seat belt or seats become worn. you can fit another one with slight alteration. But Germans make it purposely difficult to do all this. Slight changes in positions of nut bolts, tying everything together to a central identification system in the name of “quality management”. Having their own proprietary tyre sizes (this also happened with Porsche and BMW, but they quickly learnt the lesson).

    German cars are more expensive to buy, then they lose value quickly because they are difficult to maintain, then their spares are too expensive so altogether you decide to cull them because buying a newer one is cheaper than repairing the old one. This is called planned obsolesence.

    Lusting after expensive and unsustainable things would not make us “move forward”. Rather we can see examples of other countries who have altogether managed to avoid being lured by shiny toys and rather have made “sustainable” decisions.

    Gone are the days of Foxy and Micro which were user-servicable, customizable and ever-lasting. Now German things are just about planned obsolesence.

  • Tariq

    Why don’t they bring Hyundai, they have better and less expensive cars, I believe if they only launch their Hyundai Accent, it will give real hard time to all car manufacturers in Pakistan.

  • Asif Inam Rauf

    There is no, promotion, encouragement even auto universities to encourage nation for building there own home made units to compete with auto industry. How tragic we have to use an auto mobile but we are not doing any thing to build our own invention to world.

  • Hassan Shahid

    I agree with you! I own a BMW 5 series and many times the repairs have been so expensive I just considered getting rid of it to get a new car. Currently its doing ok but if one more thing goes wrong that is an expensive repair I will just get a new car.

  • Hassan Shahid

    I think there are a lot of people here who are in favor of German cars but they do not fully understand what it is like to own a German car. I own a BMW 5 series and believe me as pleasurable as it is to own it,it is not the kind of car anyone should keep after 70,000 km. It is extremely expensive to repair and after 70,000 km it will give you on average 2 expensive repairs in a year and 1-2 regular maintenance issues that are also quite costly. I am getting brake pads replaced on my car just now and the cost is 1.2 lakhs. Just the other day my thermostat went bad and the part is 12,000 rs plus labor. And these are nothing compared to what I have paid for repairs over the years. On average you should have 4 lakh rupees for repairs in a year plus 1 lakh for regular maintenance. If you are happy with a 5 lakh annual cost then good for you. My suggestion is that only buy a German car brand new,make sure it has warranty from a dealership so they fix everything for you for free if something goes wrong,and sell your car once it reaches 50,000 km. At most sell it by 60,000 km.

  • Guest

    Germany has a near to 100% literacy whereas in Pakistan, only 3.28% people 12th grade or equivalent (Hussain, 2005). Most of these 3.28% leave the country and never go back. There are examples of some successful workshop-owners on the PW forums who left the country and never went back.
    Germany has all the technology. That technology is locally developed. Those VW has been designed by German engineers, whose entire study has been in Germany, on German standards (TUV/DIN), using research conducted in German language, in Germany. Then those engineers have trained the mechanics who have excellent knowledge of German, their computers work in German, all the related workshop manuals etc. are in German, are easily available because the mechanics have a computer, can use the computer and can read those manuals. And can afford the tools of repair. Whereas in Pakistan even a good screwdriver by Stanley costs at least 800 rupees and workshops cannot afford.

    But the roadside mechanic in Pakistan cannot do all this. Even the larger workshops do not have the tools, equipment and knowledge to deal with. Heck, even 3S does not have.

    In Germany, VW is like Suzuki in Pakistan, whereas the average VW electronics is more complex than the Civic electronics. Which in turn is more complex than Corolla. Which in turn is far more complex than your SPFI Mehran.

    Only those mechanics can be trained who can at least read what the electronic device is telling. Electronic device is not easy to use and manage when people fear it because they don’t understand anything because they cannot read and write.

  • Competition is always good for business…. let them come in….it will provide jobs…

  • Guest another time

    Automotive diploma and automotive engg degree is available in many universities since the last 10 years. Previously these vacancies were filled by mechanical engineers. But now the universities are churning out automotive engineers (specialized at undergraduate level), they have no jobs. Less jobs and more candidates.

  • Zulfiqar Ali Soomro

    That is the very reason why we keep buying this piece of shit car, resale value.

  • M. Usman

    We are not looking for BMW, Mercedes or Audi type expensive, highly luxurious cars. We are looking for Volkswagen, Renault & Fiat. Which can bring small and mid size economical cars. Most of us can not buy a BMW, Mercedes or Audi. But we are fed up with 3 monopolistic companies. This policy will not only encourage German companies, it will also encourage American, Korean and other Japanese companies to come and sell their vehicles in Pakistan.
    Indeed it is a good step. Yes the policy still lacks a few things like quality, safety and emission standards. But at least we have started. And by the time with the competition most these problems will be solved.

  • M. Usman

    Who told you that only German car companies will come to Pakistan with this Auto Policy??? This policy does not state (or may be Pakwheels forgot to quote that this policy is meant for German Car Manufacturers only).
    Any company from any country can come and sell their cars in Pakistan. American, Korean, Japanese companies will be encouraged to come to Pakistan.
    All the points you mentioned exists in current Toyota, Honda & Suzuki Cars. If you go for an original part of these cars, it will be expensive. The build quality….we all know how it is. And after sale service, it’s high charges and unsatisfactory job performance.
    What we want is COMPETITION. Which will increase the number of options, quality, safety and will push to provide a good after sale service. It will also decrease the 3 to 6 months delivery duration.

  • Aqeel Zia Nayyer

    really???? thats why they give a life long maintenance free cars :/

  • Aqeel Zia Nayyer

    lol. India did not came to this stage overnight.

    by claiming the vaccum tube computer, the other computers were more expensive from them when launched and those ancient devices are replaced because people was willing to pay for the quality not for the resale.

  • Aqeel Zia Nayyer

    am not talking about features or anything, am talking about shape. check the bmw 520d and 550i price difference in international as well as local market. you wont find a difference from exterior.

  • Muhammad Yasir

    “hose ancient devices are replaced because people was willing to pay for the quality not for the resale.”

    aren’t we in agreement here ? im basically saying the SAME thing

  • Ali Imran

    This is a great article. It is so disgusting that pakistani people have to buy suzuki mehran for over Rs. 7 lac while these cars have nothing compared to those in other countrie. In india they will not even buy this car for Rs. 30000. I pray and hope that new manufacturers will enter our market soon and we will finally have good cars at affordable prices and it will wipe the monopoly of existing 3 companies. Thank God

  • Aqeel Zia Nayyer

    really?
    :O
    just really?

    merc S class gives you 30 years of rust-free body provided you have to visit them once in every year.

    is that what you call as unreliable car?

  • Tanzeem San

    Dude where does it say that the said incentives are only for German manufacturers. The manufacturers you are mentioning ared luxury car manufacturers, and if you are buying a luxury car then you should be able to afford it. But luxury cars aren’t Pak’s requirement Cuz those who can buy one can also import one, the focus will be on economical family cars. And the most sought after outcome is to break the monopoly of these 3 Thugs. And about parts and maintenance a Gadha Gadi will be even cheaper to maintain so all us Pakistanis should opt for that shouldn’t we?

  • Tanzeem San

    Pakistan has got all types of consumers, ones who will love to buy a cheap but efficient Hyundai and there are those who will go for the super luxurious BMWs n Audis, point being k hamari halat bohat achi hai and we deserve much better than the worthless crap these 3 have been shoving down our throats

  • Tanzeem San

    So what you are basically saying is that Pakistanis should stick with mehran and keep livimg in 80s cuz you think Pakistani ppl are mostly illiterate.

  • Tanzeem San

    A Chinese company can easily do that, but reliability and durability would be an issue.

  • Tanzeem San

    Altima belongs to another class of vehicles than corolla, apples and oranges dear.

  • Tanzeem San

    What model bmw 5 do u own, did u buy it new, what’s the mileage, how long have u been using it and in what condition? You just keep saying I own a bmw 5 and German cars are very unreliable, PLEASE ELABORATE.

  • Tanzeem San

    That’s exactly what we need, we need them to compete so that we can get rid of their sub standard parts and services.

  • Muhammad Yasir

    yes … i believe that is indeed an issue for the policy to work out !

    BUT … please , there’s a solution to EVERY problem. i believe if the Chinese do attempt their hand at making manufacture local… they can work with the service providers and experts here and trash out an understanding which can provide them better view and insight into making cars streamlined for the terrain common to Pakistani roads !

  • Bilal

    Even if new entrants come to Pakistan, the paindo people will go for Carolla and praado, Even if they are given a choice of German and Carolla , they will opt for Carolla

  • Muhammad Feroz

    Inshallah as soon as possible Pray for them

  • Masood Khan

    I pray we live to see it happen.

  • Rao

    Itni behas karny ka koi faida nai dosto govt. hamain bewakuf bana rahi hy just aur kuch nai. Aj free port kardo yeh local manufacturer band hojain gain sab drama hy n one more thing automobile industry per tax n audit policy storng karna aik local car per industry 4-5 lacs govt ko de rahi hy tou kahan cheat karyga? Lgair itna souchny ki zarort nai just pervaiz musharaf ka era daikh lain 10year ki import allow ki thi mini pajero flat ko n plot ki booking per gift mil jati thi govt not sincere with public asal bt yeh hy doston tc

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