JAVED MIRZA
KARACHI (January 26 2007): Auto imports, which were inching upwards by double digit have somehow halted, as the country imported 14,594 vehicles (cars, jeeps, vans and pick-ups) of different categories and engine power during the first six months July-December 2006 of the current fiscal year.
All these vehicles were imported under different government schemes including transfer of residence, personal baggage and gift, as well as commercial imports.
According to the latest data released by Pakistan Revenue Automation (Pvt) Limited, the country registered 14,594 units of imported vehicles during the 1H/FY07, of which 75 percent (10,953 units) were used while 25 percent (3,641 units) were new.
Break-up of imports in the car segments revealed that the mid-range engine capacity cars between 1000-1600cc contributed 73 percent to the total car imports. Engine capacity below 800cc and above 1600cc cars contributed the rest to the total.
"The worth mentioning part here is that the mid-range capacity car imports are mostly used whereas the cars below 800cc and above 1600cc are new," said Hettish Karamani of Atlas Capital Markets.
The brands which witnessed most of the imports were Toyota Vitz (2,821 units), Toyota Corrola (1,803 units) and Mitsubishi Lancer (971 units). Overall 10,580 units were imported in car segment out of which 79 percent amounting to 8,404 units were used whereas 21 percent (2,176 units) were new.
Pick-ups registered lesser number of imports in the six-month period. Two hundred and thirty were used while only 24 were new taking the total to 254 units. Out of the total1, 264 units of vans imported, 97 percent were new while the rest were used. Among the vans, import of Suzuki APV remained very popular as 1,132 units made their way into the country. In jeeps, 91 percent of the total 2,496 units imported fell in the used category. Seven hundred and eighty eight units of Mitsubishi Pajero and 1,171 units of Toyota Land Cruiser were the popular brands among the segments.
Shah Saad Hussein of Indus Motor Company said that the local auto industry had shown an average growth of about 25 percent per year over the last three years adding that the growth rate during 2006-07 was expected to be between 10 percent and 15 percent.
Welcoming the halt in the growth of auto imports, he said that the imports of used cars were continuing to hurt both local manufacturers and vendors.
He categorically said that in view of the manifold increase in the production capacity by the local automobile industry, the demand and supply gap had been almost eliminated, which was one of reasons for a slow in the imports.
He lauded the role of Ministry of Industries, which along with the auto industry in consultation with all stakeholders, was working to formulate a long-term policy to provide employment, technology transfers and both local and foreign investment on a sustainable basis.
It may be mentioned here that the federal government has constituted a high-level committee to recommend measures for removing concerns of all the stakeholders on import policy for used cars, jeeps, light carriage vehicles, trucks and buses.
The committee would also address issues including premium and long wait time for the consumers. It has been given the mandate to assess losses suffered by the local auto industry and original equipment manufacturers and vendors as a result of import vehicles.
The findings of the report would be submitted to the Engineering Development Board, Ministry of Industries and Production to devise measures for incorporation in the proposed auto policy. Any decision to control import of used cars would be better for the nascent local auto industry as well as for the government in terms of controlling the rising trade deficit which reached US $6.4bn at the end of six months period ending December.
With these programmes in the pipeline, it is believed that the growth in imports would decline in the coming months favouring the local assemblers, said an analyst.
Copyright Business Recorder, 2007