Pakistan’s car industry has been under pressure to carry on over the years, since the average citizen lacks the finances to buy brand new cars. It does not assist that the car financing system is not improved sufficiently to make ease for that kind of people.
Along with a reviewed car policy, automotive stakeholders have intended a reduction of 80 percent in the import duties in an attempt to improve auto trading inside the country.
80% decrease in import duties has been projected to enhance auto trading in Pakistan
As per to the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), the key to success is localization in the industry. However this is the only reasonable means of given local customers with the kind of easiness which they have all the time been in demand of.
70% cars are obtained through car financing in other countries while in Pakistan, it’s at 30%
What reforms will the new Auto Policy bring?
Other than the 80% reduction in custom duties for the next 5 years, there are a number of other reforms in the new proposed auto policy, which are listed below.
There are some other modifications in the new planned auto policy, other than the 80 percent decrease in custom duties for the next five years that are given in the following.
- Car makers are going to need to make a new design for their car model following every ten years.
- Producers are going to be required to install car theft security alarms in every vehicle they make.
- A car recall system has been presented for situations where there is a problem in the production line
- To avoid delays, the policy advises 50% of the total price to be paid at the time of purchase and remaining at the time of delivery.
What’s in store for the future?
If and when the policy implemented, the new auto policy is going to provide advantage for both the upper class and law level citizens. The policy makers are trying to motivate motorcyclists who have preferred to change their ride with a small car, however have not been able to do because of the increasing car prices. Pakistan’s car market is awaited to get mature with the approach of the latest car producers.
Ultimately, this may lead to cars that chase the overseas standards of safety and security. If accepted, these changes can make a brilliant improvement in the country’s economy in the longer run.
Update
Kindly know that this is auto policy is planned by industry stakeholders, and government may or may not go for it. We have realized that Government is attracted in relaxing massive tasks; particularly regarding the hybrid cars therefore there is some hope.
But, approval for this policy is only going to gain following the official declaration from the government.
New Auto Policy will Cut Import Duties by 80%
Follow
