Import of used cars has been a policy which I personally feel is flawed as it damages the local industry, plus these vehicles are predominantly old, damage repair and require spare parts which are mostly smuggled into the country. Local players have taken the public for a ride for decades. The Suzuki Mehran is a prime example of how an 80s car which was outdated by the early to mid 90s world over, continued to be sold to the people of this country who had no option but to buy this outdated vehicle. I do not understand as to why the policy makers don't allow import of affordable brand-new vehicles and enforce a complete ban on import of used cars. These brand-new cars should be imported officially and not on ones passport or through individuals. For example, Nissan can give a franchise to a local renowned company to establish a network of showrooms for imports of their cars. The duty structure should be as such that these cars give competition to the local players but do not replace them altogether. For instance if a local mid size vehicle is for 5 mn a similar brand-new imported vehicle should be for around 7 mn. Another example, could be that a local car costing 3 mn should have an imported equivalent for around 4 mn. The duty structure should be such that it encourages competition but discourages cannibalisation. This way people have the option of buying an imported and brand-new vehicle but at a higher price based on their affordability. This way we get latest and brand-new vehicles and local players get competition but not as to damage their sales.
