The DAWN National Weekend Advertiser

The DAWN National Weekend Advertiser

Tag Archives: open trade with India

2014 – The Year In Review

31 Wednesday Dec 2014

Posted by Dawn Advertiser in 2014, CARS, Economic Trends

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Tags

2014, Auto Industry Development Programme (AIDP) exports, cheaper competition, Competition Commission of Pakistan, customer-focused local production, decreased exports, economical category vehicles, Europe, fuel-efficient, high-end 1300cc and above, import of foreign vehicles, liberal car import policy, long-term policy framework, major car industry players, Mazhar M Chinoy, new car launches, open trade with India, Pakistan’s automobile industry, South East Asia, State Bank of Pakistan, taxation, value for money

AdBuzz LeadAs 2014 draws to a close, Pakistan’s automobile industry appears to have little to rejoice about. New car launches by the major industry players have generally disappointed customers in terms of value for money. This has been further exacerbated by their failure to cater to the fuel-efficient, economical 1000cc or under category of vehicles, myopically choosing to focus on the high-end 1300cc and above segment.  Consequently, 79% of all imported cars in 2014 belonged to the 1000cc or under category, an increase of 59% from 2013.

The industry took a further beating with a scathing report from the Competition Commission of Pakistan that called for a liberal car import policy from the government, including lifting of restrictions on the entry of new players from Europe and South East Asia. The State Bank of Pakistan also advocated the import of foreign vehicles in its report for 2013-14. These reports are likely to result in the government facilitating an increase in the number of imported vehicles, posing a bigger challenge for the industry in 2015. Continue reading →

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