PAMADA Calls Used Cars Import Scheme a National Crisis

PAMADA on Imported Cars

Automobile industry hit a new low when Pakistan Automobiles Assemblers Dealer Association (PAMADA) reported that government’s used car scheme has damaged local market and the situation is getting out of hand. As reported by The Nation; Chairman PAMADA said:

The government should probe the biggest impediment to new investment, misuse of baggage and gift schemes for imports of used cars. This misuse is also resulting in huge losses to national kitty

He further said that we feel insecure about government’s current policy as illegal cars are being sold under the very nose of custom and FBR department. This gift of government has become a nuisance for us and must be dealt with. Smugglers are using the scheme to sell their cars in the market without paying any penny; government should stop this scheme right away and give compensation to the losses, which the local manufacturers have gone through with.

He further elaborated:

Approximately 54,000 units were imported in 2015-16 as compared to the 30,000 units in the coresponding period of the last year

Considering the stats, the situation is quite concerning and alarming for the local manufacturers and assemblers to work, where the market is all crammed up with used legal and illegal second-hand cars; easy to buy and sell.

The scheme was introduced to boost local car market but it did the opposite and makes it even worse, over the last ten years, more than 300,000 used cars have been imported, capturing a large share of our local automobile market. This is one of the many reasons why many car manufacturers’ plants like Hyundai, Nissan, Fiat etc. are on the brink of closure [while some are already closed].

In this situation, the Government needs to re-evaluate their policy according to the deteriorating market conditions. Because not only is this policy affecting the local auto industry but is also going to reflect on Government’s revenue generation; as under SRO-577, which includes with-holding taxes, sales taxes and custom duties  on the used import cars for some arbitrary and un-known reasons. This activity has managed to generate a grey economy of PKR 80 billion in 2015 alone, which is not good for local manufacturers as well as for the country’s economy.

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  • Azeem Waqar

    But Why you people did not produced such a quality and cheap car which can compete them despite that Imported cars are mush expensive due to large duty……and still u can’t compete them why i buy the shit Mehran for 7lacs………

  • Awais Yousaf

    Hahaha! This makes me so happy. If the big three continue to provide us with shitty cars i wish they all shut down very soon. That’s what you get when you don’t provide good cars to customers.

  • Muhammad Jahanzaib Minhas

    If you local automobile provide us better cars why would we chose used cars?
    Local manufacturers need to think rather than criticize. Toyota, Honda, Suzuki need to improve their level and offers numerous options specially 660-1000cc range.

  • Muhammad Jahanzaib Minhas

    I wish they manufacture quality cars rather than shutting down. It would be good for both makers and customers.

  • Muhammad Jahanzaib Minhas

    Exactly… i think if they produce quality cars with somewhat same range of price then why would be using used cars? Obviously we will buy new one.

  • Alpha Bravo

    Bara jaldi nai khayal aa gaya.. 😉

  • Awais Yousaf

    Do you really think its possible? We live in Pakistan bro. Here nothing gets better other than dhokha!

  • Muhammad Jahanzaib Minhas

    bitter truth.. 🙁

  • Zulfiqar Ali Soomro

    A big f**k you to Atlas Gunda, Napak Suzuki and Chuss motors Toyota m/

  • Smokingaces

    “This is one of the many reasons why many car manufacturers’ plants like Hyundai, Nissan, Fiat etc. are on the brink of closure [while some are already closed].” Did I miss something? Are Hyundai, Nissan and Fiat still functional in Pakistan? I am talking about their commercial cars.

  • Smokingaces

    This is absolutely ridiculous and extremely annoying. More irritating is the fact that PakWheels is actually endorsing it. Seriously! Why do u think anyone buys a 7-8 years old car which is sold for the price of brand new locally assembled car? Are Pakistani automobile customers just fools and stupid enough to spend their money on anything(apart from those who still call MehrEEn and Cultus a “car!”.)? Of course NOT! its the ridiculously low standard and poor quality of bib3 available options, that we, car buyers are almost forced to look somewhere else. They are saying that they have faced lots of losses due to these imported cars, but what about the losses we Pakistani car buyers have been facing for years at the hand of these Sick-3 ? SO instead of making such stupid cases, they better raise their manufacturing and quality and features, or we have and always will have other options, and we won’t think for a second before going for those options.

  • ok .. is it me or pakwheels is just seems to be becoming like the paid journalists for the big (khoon choos) 3 ? quoting another commenter here he gave them the perfect names ” Atlas Gunda, Napak Suzuki and Chuss motors Toyota ” ….
    Smokingaces said what any and every sensible car user of pakistan would say . when you sell your shitty decade old technology or toned down cra at unreasonable sky high prices … then dont cry when people instead of wasting their hard earned money on your shit they buy a used 3-5 year old used imported car .. unhe kisi pagal kuttay ne kaata hai ??

  • GuestCeption

    Personally I think it isn’t about the promotion of any xyz brand, it’s about sharing two sides of the same pictures. Remember, PakWheels doesn’t hesitate to put the hammer down in majority of the blog posts related to local industry. However, what I can conceive from this post is that PW is trying their hands at the reporting of latest events in the automobile industry of Pakistan, which in my opinion is good. Because this is a news piece which is often followed by a Opinion piece where anybody can express their views.

  • XCon

    haha… Let me tell you the local automobiles are in a real pinch over this situation. But this news is authentic and some of the issues pointed out by ‘Mr. I am the Chairman of PAMADA’ are genuine, specially the smuggling and FBR’s policies. However, if you were to think about it due to these Kei cars, we have been seeing and hearing a lot more news in our local automobile market, which otherwise would have been left to the beautiful ‘silence’.

  • after your comment , I re-read the post and I think the last paragraph is an opinion in favor of what chairman PAMADA (read big3) is demanding from govt. its not worded like news or an excerpt

  • the issue is of illegal imports(smuggling) not of the imports itself. And I support that illegal should be stopped . but that is not the problem in used cars import policy , rather than the problem is with our security agencies.

  • Marcio

    Death to the Big Three

  • Guest

    Right, it is about the smuggled cars, not the legal imports.

    Though the legal imports also caused problems such as shutting down of Nissan, Mitsubishi while the big 3 have remained isolated.

    The smuggled (NCP) cars roam over entire Balochistan, FATA/PATA and AJK. It is funny that FATA/PATA and AJK use Pakistani NIC, Pakistani passport, get Pakistani govt jobs, serve in Pakistani military and also get martyred after sacrificing their lives, yet still they claim they shuld be exempt from custom duty.

  • Diff

    What is the difference between a big ___ and a small ____ ?

  • Jahanzeb Khan

    FATA/PATA …That’s because they have no schooling system, they have no jury system. We never thought them to be Pakistani. they can’t chalange the decision made by the political agent (the Mai Baap of the area). You collect the taxes from the area where you give the facilities.

  • Guest again

    It is a complex issue complete along with that obscene Frontier Crimes Regulation, through which a lot of injustices have been meted out there.

    But still the schooling system and jury system is pretty much nonexistent and ineffective elsewhere in Pakistan too (hence people turn towards other methods of schooling and informal methods of dispute resolution) but they (the rest of Pakistanis) are still subject to taxes, so your point is king of moot.

  • Muhammad Jahanzaib Minhas

    lets hope for best brother.. nothing is impossible. 🙂