Sunday, January 29, 2012

Cars production

Pakistan’s auto industry believes that govt should discourage import of used cars and other used vehicles by amending the existing liberal used cars policy to safeguard the interest of the local auto industry and vendor industry employing about 400,000 people directly and 2,000,000 indirectly. 

The industry estimates that Pakistan’s local auto industry is likely to see increase demand of locally produced cars from 184000 units in the year 2011-12 to 222000 units in 2013, 259000 units in 2014, 293000 units in 2015, 323000 units in 2016 and about 349000 units in 2017. In case the government revises its used cars policy, than there would be more tax collection on sale of increased new cars, there would be more job opportunities in auto assembly as well as vender industry, improved policy would help attract more investors in sector and all this would help reduce the dependence on import by spending precious foreign exchange which are already under pressure. 

The auto maufacturers wants reversal of the used cars policy and allowing only 3 years old and used cars instead of existing 5 years old and bringing depreciation to 1%/annum from existing 2%. 
The industry also demands that registration of used car should remain in the name of overseas Pakistanis on whose name used car have been imported. Otherwise, government should collect tax on registration of such car on any other name instead of overseas Pakistani on whose papers such car was imported. 

As per industry data released, some 13,000 used cars and other vehicles were imported during fiscal 07-08 and when policy was tightened during  08-09 this import dropped to 7,000 and 4000 in 09-10 and just 7000 units in the fiscal 10-11. 

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