Prime Minister’s opinion on car price hikes hailed


LAHORE: The Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) thanked the Prime Minister for taking note of the rise in auto prices in the country, which is mainly due to a lower content of parts localized, a statement said on Saturday.

Key PAAPAM members at a meeting said the government’s strict tariff and tax policy affects car prices in the country and needs to be revised, he added.

The imposition of a regulatory fee, an additional customs duty, a devaluation of the rupee and a higher federal excise tax are major burdens on car consumers, they added.

“As the existing auto policy is due to expire by the middle of the year, immediately triggering the preparations for AIDP 2021/26, now is the right time to completely upset the stagnant system regulating the auto regime and to bring transparency. and credibility in proceedings. ,” they said.

“PAAPAM fears that in the absence of a transparent system for regulating auto parts imports, the economic situation will decline further with the arrival of new entrants in the field and the launch of electric vehicles at our doors. . “

“Now is the time to thoroughly analyze the root cause of the high car prices in the country and design a long-term strategy to produce vehicles on time according to demand, in addition to designing and implementing implementing a 10-year “auto parts location policy” to ensure the location of all value-added parts.

This would translate into reduced costs, reduced parts delivery time for assemblers and vehicle availability for consumers; they said.

In addition, these measures will create awareness of the technology, generate skilled jobs for local youth, reduce revenue losses for public finances, in addition to forcing OEMs to invest in inspection and testing laboratories and reduce approval times for locally developed automobiles. rooms.


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