PAAPAM slams dealers for misleading govt on various issues

LAHORE: Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) Chairman M Siddique Misri has criticised All Pakistan Motor Dealers Association (APMDA) for allegations against the auto parts manufacturers and also for misleading the government on various issues pertaining to the automobile industry, a statement said on Saturday.
He said APMDA officials should visit the Pakistan Auto Parts Show held at the Karachi Expo Centre in early March, where thousands of locally-produced auto parts were placed on display, by over 200 auto parts manufacturers from across Pakistan.
He said since 2005, domestic production of automobiles has declined by 30 percent, five assembly plants have been shut down and the global brands have shown lack of interest to invest in a country, which prefers to import rather than manufacture automobiles.
The PAAPAM chairman expressed dismay that 40 percent of the currently installed capacity in the country is lying idle, causing huge job losses in the industry.
The only way to resolve the social problems of the country is by creating employment opportunities for workers, technicians, engineers and management professionals through aggressive support for manufacturing automobiles and auto parts in the country, he said.
This has been the route followed by various countries such as China, India, Indonesia, Thailand, Malaysia, Brazil, etc, he said, adding, auto parts manufacturers are playing a commendable role by producing high quality components, which are being used in latest vehicles being assembled in the country such as Honda Civic, Toyota Corolla, Honda City, Suzuki Swift and Suzuki WagonR.
The cost effective parts are being produced for entry level models, such as Mehran, Ravi and Bolan, which have all been modified recently, to fully comply with the Euro 2 regulations implemented by the government of Pakistan, he said.
Contrary to the APDMA claim, most of the car models produced in Pakistan are lower in cost as compared to other countries, said Misri. This cost reduction has been possible despite very small car market volumes in the country.
For this achievement, full credit must be given to the auto part manufacturers for assuring localisation at economical prices, he said.
Since 2007, the rise in car prices has been due to increase in various input costs (as well as rupee erosion), but the increase has been much lower as compared to the multifold increase in prices of other commodities and manufactured goods during the same period, he said.
He demanded the government to create a level-playing field by withdrawing duty concessions on used cars import.