Manufacturers urge govt to stop import of used car

[alithegreat]

Manufacturers urge govt to stop import of used cars

By Fida Hussain

ISLAMABAD: Despite their failure to bridge the gap between demand and supply, the car assemblers are pressing the government to change the policy of allowing the import of used cars and want no further facilitation in the next trade policy.

“If the policy of allowing the import of used cars continued unchanged, the car manufacturers will be left with no option but to go for downsizing by 5-10 percent,” an official of a leading car manufacturing company told the Daily Times on Thursday.

He said the current policy also is hurting car manufacturers’ expansion plans. The import of cars affects negatively the investment of car manufacturers, said the official as he rejected the Central Board of Revenue chairman’s claim that only a limited number of cars will be imported by the end of this year under the gift, personal baggage and transfer of residence schemes.

Our major demand from the government is to allow the import of cars, which is two-year old instead of the existing three-year used cars, the official said.

He said car manufacturers had been on with expansion plans for the past three years. Car production increased from 80,000 units in 2002-03 to 120,000 units in 2003-04. The production of cars increased to 155,000 in 2004-05 and has been estimated to touch 210,000 units this fiscal and 235,000 units in the next fiscal.

The government allowing the import of used cars has put us in trouble, he said. “We are not pursuing our expansion plan vigorously,” he added. The current import policy can force us to go for downsizing by five percent, he said. If further facility was given in the next trade policy, downsizing could be around 10 percent, he said.

According to our estimates, the import of used cars stood at 666 units in the first month of the current fiscal. In August, this number was 555, which sharply jumped to 1,109 in September 2005. In October the number reached to 1,644 and it increased to 2,105 in November this fiscal. In December 2005 and January 2006, the number of imported used cars stood at 3,092 and 3,400, respectively. The number of the same stood at only 194 in 2002-03 and 418 in 2003-04.

There is strong resentment among car assemblers, according to the official. We estimate that 15,000 used cars will be imported by the end of this fiscal, and this will badly hurt our investment.

Daily Times

[aisheikh]

what the f*** is wrong with these manufacturers. They should just shutup, and stop monopolizing the market. There is something called consumer rights, if they want to compete they should provide the local cars in less time, better quality, less price, and most of all the eliminate the B.S. of own.

[testdriver]

ABB AAYA NAA OONTH PAHARR KAY NEECHAY........

[AbidSiddiqui]

i m urging to stop import of foriegn car assemblers(assembling high cost - low performance cars), lets promote only local manufacturers : )

[spectra]

aisheikh is 100% right, i am with you.

Actualy the manufacturers are afraid that imported cars will eventualy fill the demand supply gap and it will not leave an excuse for them to pocket haraam premiums. Thats why they are crying.

Till now they had their way by fair or unfair means with te Govt., now surprisingly, Govt. has given a Consumer friendly policy and these so called manufacturers are threating layoffs and are crying. Bloody blackmailers.

A good businessman looks for market oppurtunities, which is ample here in Pakistan, they dont create shortages for exploitations.

Haraam laga ho naa jab moo ko to phir aise hee hota hai.

They were not able to prove anything in the past that they are worthwhile. They never listened to customers. They deserve it. They should be treated even worse then that till the time they realise that only satisfied customers are a real source of profits, not this black marketing and blackmailing.

[aisheikh]

These blackmailing Manufacturers are playing the media, to pressure the govt. There needs to be a way to voice out the rights of the consumers so that these Assemblers dont have their dirty ways of doing their business.

[twisted17]

Local manufacturers are basically foreign (read Japanese) companies which opened up shop here about 20 years ago. In that period, couldnt they have had enough investment and infrastructure to produce more cars and fill the demand-and-supply gap? If asking them for more cars cant be accomplished, better quality and service is a far cry. If they would have spent all that money blackmailing government high-ups to production of more and better quality cars, they wouldnt be b*tching about it right now. They practically dug themselves a grave and put one foot in it, if you ask me.

[nightsurfer]

yeah they should first start to deliver their cars on time then talk. even now the conditions are favourable to them. own hasnt come down nor the delivery time. they themselves are making profits by importing new cars. all the assemblers are importing new cars of their respective brands. what do they say about that. and its a shame for indus and atlas that an imported(duty paid) lancer costs almost the same as their corollas and hondas.

[anonymous112]

Why do people insist on thinking that the "OWN" (Premium/On) amount goes to the assemblers. These assemblers have nothing to do with the black market.

Its the investors who book large amounts of cars and sell them at a profit on the black market because people are ready to pay extra for early delivery.

Im sure many people here know what im talking about as so many of us do it too. Book a car not for personal use but just to get a profit.

[spectra]

@anonymous
Its a racket which includes assemblers as well.
I know people who have a say in such decisions and i can tell u with confidence that assemblers are part of it.

[anonymous112]

Its the best and quickest way of making easy money. Putting 10 lacs in a bank or any business would never return a lac extra just in 4 months whereas booking a corolla and selling it at a premium price does just that.

[spectra]

this is called zakheera andozi/black marketing ad whoever do this on purpose is...............

[anonymous112]

Im sure u know many people but I can also tell you with confidence that assemblers have nothing to do with it.

Its only hurting the image of their product and making end users and genuine buyers angry. None of that black money goes to the assemblers so they have no reason to make such decisions.

[555]

Spectra is 100% right. Not only assemblers, the ruling elite is also involved in this haram money extortion. The kith and kin of the rulers get cars on priority and then they sell in the open market earning premium. In this way "hamam mein sub najgey hein".

[spectra]

with u 555

[nightsurfer]

yeah agree

[khan4ever]

No need to promote the local car manufactures they have become like underworld dons charging extrotion money from the consumers charging more than the original car price while providing a cheap quality product , example corolla ppl here psh directly involved in the own profiting have got there special customers to whom they deliver the cars within weeks and share the own profit with them.Its good to see some competition which has come through and they are scared from old used cars thats pathetic that shows u there quality of work.

[tauseen123]

as i earlier mentioned in a Previous Topic :-

iF we do a Thorough research of our so Called Local Autoassemblers we would FinD that Japanese are LOOTiNG uS Pakistani's!! They are not Transfering Full Techknowledgy to Pakistan, Y not are they doing this ?? Well if they Do this, Their Share in earning would Drop, Cars would go Cheap as Local Manufacturing would Increase. If duties on imports are Revised it Would favour the Local Public ONLY, iT would help in Drasticaly reducing Cars Prices in Pakistan, which I think everyone knows ARE Overpriced. Overpriced not by a Small margin BUT By a Very Large Margin and i really mean LARGE!

A top spec Civic Sedan in USA would cost you around 7-8 laks PK Rs. (correct me if i am Wrong). But ova Here the same Civic would Cost u around 11-12 Lakhs; Thats WHAT!
a whoLe 4-5 Lakhs Margin!!

The Problem iS these Companies or i Should say PAMA (Pakistan Automotive Manufacturer's Asscociation) iS Filling Government's Pockets which is the Reason the Government is Silent till Now about What Pakistani People are Buying and at What Price. These companies know that iF people are given a choice to chose from, they would never go For their products (which are of Low quality and High price). But now Hopefully some of The Corrupted part is being ripped of the Government and now iT too realizes this FACT. No ones gonna Get Harmed if Import Duties on used/reconditioned Cars are Revised, iT would greatly be in Favour of The Pakistani Public. These Companies (Honda, Toyota, Suzuki) have Looted us very MUCH noW and iT got to Stop Now! or iT will Never!.

..I hope i have expressed my Thoughts clearly as i Am noT a Guy who can EXPLAIN VeRy efficiently to people..

People wake Up ! Take a stand against these Looters.

In my opinion we Should be given the Freedom to buy what we Want and Not just What is Available.

I think the Evil strategies of PAMA are also being Noticed by Adam Motors Co. and this is Why They have noT joined iT till now ( but again iT is JusT what i ThinK ).

Regards.

[tauseen123]

Proverbial_Slang Bhai said :-
Small sentences... Clear picture.

The Japanese manufacturers bribe the govt to earn HUGE profits out of the paki ppl's pockets.

WTO will Fark the huge insane profits and bring the price down to a reasonable level.

Paki automakers will streamline thier operations and make em more cost effective to compete with international automakers.

Good for Pakistan

Peace

Just thought to bring the Discussion here.

[anonymous112]

The top spec civic in the USA costs $20,000 which is Rs.12 lac not 7 lac

Why do people compare the pakistani market to huge markets like the USA and India.

In the UK (small market) where volumes are low the car prices are the same as pakistan.

They get more equipment like airbags and ABS and emission controls as standard because the government has emission and safety laws and regulations. Once pakistani government adopts these regulations localy manufactured/assembled cars will also have these features. (Like india has with Bharat 1 & 2 etc)

Again.. the profits of Own/On/Premium are not shared by assemblers but by the investors and some dealers.