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Auto industry urged to help govt boost exports, earn forex

RECORDER REPORT

KARACHI: The Federal Secretary of Commerce and Industries, Abu Shamim Ariff has urged the local auto industry to explore ways and means to assist government in boosting exports and earning precious and much needed foreign exchange.

Speaking at the inaugural ceremony of the 850cc Daihatsu Cuore car, at Indus Motor Company plant, he said," While I assure you of the government's support towards the industry, I would like to emphasise that the corner stone of this government's policy is to maintain consistency and transparency to attract additional investments including foreign investment".

He said as the first step towards this goal the government had initiated talks with the industry and vendors to finalise a long term policy for the auto-industry.

He said that the standard of locally produced car components had improved a lot and added that in a recently held auto-part exhibition in Karachi, over 120 vendors had participated and displayed very good quality car components.

He criticised the high prices of cars, which had registered a very sharp increase in very short span of time. The prices had gone out of the reach of the common man, he added.

He said that Pakistan did not have a price control system, but the government would not allow this unchecked increase and remain quiet on this issue.

He said that the government had conducted a study which revealed that local small car market was much bigger but it remained limited due to high prices.

He said while the government was prepared to support the industry, it also needed the industry's support and specially support from its friends in Japan in transfer of technology to boost the industry, affordable prices for Pakistani customers and to enable the export of locally manufactured cars and parts to the neighboring countries.

He was happy to hear that this new production line of Daihatsu Curoe had achieved 40 percent localisation.

Ali S Habib, the Chairman of Indus Motor Company, stated that Daihatsu Curoe had achieved 40 percent local component ratio, which was highest ever achieved for a new car at the time of its launch in Pakistan.

He thanked Toyota and Daihatsu for their strong commitment towards Pakistan and urged the government to promote a long-term and stable policy that would encourage further investment

Shingu, President, of Daihatsu Motor Company, Japan, said that it was for the first time in the world that Toyota and Daihatsu Brands were being manufactured in one plant and would be marketed through a single dealership network.

He assured the Pakistani customers of the highest quality, performance, durability and driving comfort offered by Daihatsu.

Farhad Zulfikar, Managing Director, Indus Motor Company, said that the high prices of cars were due to high tax rates in Pakistan which came to almost 30 percent of car price. He said if government reduced taxes, the car manufacturers were ready to reduce car prices in the country.