Auto policy 2015 is developed as consumer friendly for importing cars from other countries to Pakistan

Everyone has seen the fanfare at the Pakistan Auto Show 2015, along with the crowd of auto fans, exhibitors and foreign auto representatives, the President of Pakistan also graced the show. President’s tribute to the auto industry was a statement that represents the voice of the entire nation. During his speech, President called on industrialists to consider the major stakeholders – customers – as most important, rather than increasing their profit figures.

This not the first occasion when car makers have been called out for roasting consumers and their interests in the pursuit of their profitability.  Competition Commission of Pakistan has released the findings of an inquiry about the collisions between stakeholders of industries. Findings of that inquiry evident that the collision took place in four segments, sales of new cars, spare parts sellers, body repair and painting.

They also found that Pakistan has no flexibility and affordable choices for the buyers of used cars, a 15 to the 20-year-old family car still can’t be bought less than half million rupees. Safety features of the brand-new cars are even lesser than the 10 years old cars in Japan, USA or UK.

On one hand, the Yen has faced a significant decrease in the value but on other hand, the car industry has elevated its profit margins to strengthen its position.

Auto industry said that they are operating at decreased efficiency with the demand of the vehicles in the country. But evidence shows it as a game of collecting money from customers, in some cases, even six months before the delivery of vehicles.

The Government has finally decided to grant incentives to the end user by allowing the new entrants in the country to setup their systems for auto assembly. However, the formulation of the auto policy 2015 has so far waiting for consumer feedback. Economic think-tanks said that the new policy should be more customer friendly. Several suggestions made include the introduction of  the recall system to remove the faults on any vehicle of that particular automaker. Secondly, they demand for localization to bring the car prices down.

The Government has also decided to draw down the majority of import duties and regulatory duties on the cargo to Pakistan. New auto policy must put the economy on the progress track where consumers will be in the driving seat.