Auto policy benefits

This refers to the letter, ‘The auto policy’ (March 31) by Kulsoom Arif. The writer has made a very good analysis of the drawbacks of our earlier auto policy by correctly pointing out that the existing three major auto manufacturers are mere assemblers and have achieved very low levels of deletion and localisation. These players have a monopoly over the local market and have not achieved a significant level of deletion despite their commitments at the time of approval of the manufacturing/assembly of their automobiles by the government. As against this, China and India have achieved very high levels of deletions in most of their foreign-brand auto manufacturing.

The new auto policy is good, but it can only achieve its objectives of high level of localisation, lower prices with high quality products if the deletion policy is given at the time of granting approval to other major international auto manufacturers who show an interest in entering the Pakistani market. The given deletion schedule should be strictly implemented. This will help expand local vendor industries, encourage healthy competition and generate more employment and investment in locally-assembled spare parts. Above all, it will benefit the end consumer by reducing the unrealistically high prices of locally-manufactured vehicles.

Zaheer Ahmed

Islamabad