It is happening because of lack of policies....
For e.g.
If paksuzuki is importing an engine which is produced in japan at cost of 5 rs per piece and after import, shipping plus taxes make it 8 rs per piece....
They can make it cheaper because they have far more better machines and technology etc....
BUT if they try make it here it will cost them 10rs per piece...
As be are very far behind from developed countries....
We got the answer why the are importing parts....
Now the question is that why don't they assemble the whole car there and import it as complete car??
As we are developing country with high population and less available jobs our labor is cheap then developed countries and one more thing is that our government has imposed high taxes on importing in automobile sector....
Third and last question, why i said lack of policies??
If paksuzuki is importing an engine which is produced in japan at cost of 5 rs per piece and after import, shipping plus taxes make it 8 rs per piece....
It is costing them 8 rs per piece as the taxes are low.... if our government imposes sufficient taxes that cost of locally produced vehicle is same or cheaper then of imported vehicle e.g. 10rs
This is how ps and other will produce their car here....
Cutting and loosing policies is not the solution....
