A growing demand from local consumers and the export potential of the Pakistani automotive industry are helping fuel growth in the country’s auto sector.

Pakistan’s products and potential will be on show at the fourth International Automobiles, Auto Parts and Accessories Exhibition which will be held at the Karachi Expo Centre. After the success of three consecutive exhibitions, the show offers even greater exposure and enhanced business opportunities to its participants.

The exhibition will feature a display of products ranging from auto parts, components and accessories, to automobiles and maintenance equipment by leading local and international companies. An expansion in the production capacities of the leading auto manufacturing companies in Pakistan has contributed to the growth of this sector, which was over 50% in 2005. The sharp increase in the demand of cars compelled auto assemblers to increase their capacities. Vehicle manufacturers directly employ over 192,000 people with a total investment of over US$1.5-billion. The auto policy of Pakistan envisages an investment of US$3.9-billion in the next five years, which will make the target of 0.5 million cars per annum achievable.

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Although the auto industry in Pakistan is growing up but the recent economics crises effects the consumer buying power badly, the increasing rates of automotive products is a big question mark on future of auto industry.

Auto Industry has the potential to play a vital role in reviving Pakistan’s economy as auto sector and its allied units provide employment to over 400,000 workers in the country. However, many factors like high interest rates, imposition of five percent excise duty, withholding tax and increase in sales tax & electricity tariff, galloping inflation and economic slump etc. are badly hurting auto industry due to which about 150,000 workers have been laid off by the auto vendors and assemblers in the last few months.
Therefore, government should immediately come up with a rescue package for auto industry to arrest its further decline and rising unemployment in this sector which will create many social and economic problems. This was observed by Shaban Khalid, Acting President, Islamabad Chamber of Commerce and Industry in a statement.
ICCI Acting President said Pakistan’s automotive sector had recorded impressive growth over the past few years and in view of rising demand for its products & better future prospects, auto sector businessmen had made long term heavy capital investments in plant & machinery, acquisition of latest technology, R&D as well as expansion in existing capacities.
However, alarming decline in demand of cars due to recent recession has hit them hard due to which they are in troubled waters as they have to pay much higher interest on loans, which they had initially taken on much lower interest rate. Therefore, he urged upon the government to provide some relief to auto sector businessmen in the form of reduction in interest on loans which had started before the interest rate hike so that they could survive in the current crisis.
Shaban Khalid said in world markets, auto sector is considered as a major driver of economic growth and business activities as it deeply impacts the economy. He said about 20-30 percent workers are feared to be laid off in the next few months in case the slowdown in our auto industry lingers on, therefore, it is high time that government should take notice of auto industry woes for urgent remedial measures.
He said Pakistani auto industry has made great achievements in the fields of local manufacturing and market shares during last decade, as 25 auto manufacturing companies have been producing and assembling cars, LCVs, trucks, buses, motorcycles and tractors.

Italy’s cabinet approved a long-waited decree offering incentives on new car purchases to stimulate spending and revive the recession-bound economy, a government source said. The government also offered tax breaks on appliances and furniture as part of the package.

Here are some details about recent aid packages for the shattered auto industry:

* BRAZIL: Said in November it had instructed state-run bank Banco do Brasil to make available a total of four billion reals ($1.72 billion) so that automakers’ financing units could increase lending and spur sales.

* BRITAIN: Announced last month it would guarantee up to 2.3 billion pounds ($3.29 billion) of loans to the car industry. The government said it would guarantee up to 1.3 billion pounds of auto industry loans from the European Investment Bank and guarantee a further one billion pounds of loans to back investments that are not eligible for support from the European lender.

* CANADA: Unveiled an aid package on Dec 20 that provided C$4 billion ($3.28 billion) in emergency loans to the Canadian arms of General Motors and Chrysler to keep them operating while they restructure. The automakers have a deadline of Feb 20 to come up with a comprehensive plan that would allow them to get government aid.

* CHINA: Unveiled measures on Jan 14, which included cutting in half, to five percent, the sales tax on purchases of carsengine sizes below 1.6 litres and one-off cash subsidies totalling five billion yuan ($731.1 million) to owners of high-emission vehicles who trade them in for cleaner ones.

* FRANCE: Prime Minister Francois Fillon said on Jan 20 France may pump up to 6 billion euros of aid into the industry, but warned that automakers would have to safeguard French jobs in return. Measures may be announced next week.

* GERMANY: Unveiled a 1.5 billion euro aid package on Jan 13. The package forms part of a 50 billion euro stimulus package of investments, tax relief and support for companies. The measures include incentives worth 2,500 euros for new car purchases.

* ITALY: Announced a stimulus package for cars on Friday which includes a payment of as much as 1,500 euros for trading in an old car to buy a new one. Italian car sales are expected to fall 17 percent in 2009, after a 13 percent drop in 2008,

* PORTUGAL: Announced on Dec. 3 a 200 million euro credit line for auto and car parts exporters.

* SWEDEN: Said on Jan 22 it had given the National Debt Office the authority to grant emergency loans to the industry.

* UNITED STATES: Announced on Dec 19 a $17.4 billion lifeline to Detroit car makers. The bailout funds will come from the $700 billion Troubled Asset Relief (TARP) programme. GM will receive $13.4 billion and Chrysler $4 billion. Ford Motor Coautomakers cannot prove they are viable by March 31. with said it did not need a loan. Loans will be called in if the automakers cannot prove they are viable by March 31.
source: www.dailytimes.com.pk

When we talk about auto industry crises in pakistan, we must understand it is not only the pakistan which is facing such crises it’s a global issue. the competition is getting harder and harder day by day. although the governments are supporting financially by different ways but it’s not only the financial support which is required to auto industry but governments must also provide a healthy atmosphere to auto makers for comprehensive marketing of new products and also ease by waving the extra burden of taxes on auto parts.

General Motors India launched a new variant of its Chevrolet Spark called Spark Muzic on February 10, in New Delhi. The car comes equipped with a new music system and a six-CD changer. The company hopes to generate better sales this fiscal with this launch. The Chevrolet Spark special edition-Muzic comes with a three-year or 100,000-km standard warranty, which is an industry first in the mini-car segment.

source: www.newkerala.com

The craze for new innovations in auto industry is at peak in south Asia. General Motors newly launched Chevrolet spark Muzic is part of the same. it is not a dream comes true for music lovers and also adjustable in congested traffic area of india. Hopefully it will be a successful adition in auto industry.

The permission to import second-hand buses from India under the new Trade Policy 2008-09 would harm the local auto industry, said lftikhar Malik, CE Guard Group and former Chairman of Pakistan Automobile Spare Parts Importers and Dealers Association.

According to press release issued on Wednesday, Malik who is also Former President of Federation of Pakistan Chambers of Commerce and Industry said that had the deletion programme followed diligently Pakistan would have been not only self sufficient in case of Japanese vehicles but also exporting to other countries. This way Pakistan was made paradise for the automobile assemblers, which hardly passed on technology to Vendor Industry to produce deleted parts locally.

Our Auto Vendor Industry has adequate in-house engineering facilities to produce such parts. The brilliant example of Massey Ferguson UK Tractors could be quoted as evidence. They have achieved deletion over 90 per cent. It means the technology exists in the country but auto assemblers are intentionally diverting to their principals for import of parts and avoiding the deletion program.

Iftikhar Ali Malik further said that he was Chairman PASPIDA in 1978 and on the basis of his 30 years experience, he could exert with authority that Pakistan had remained heaven for import of vehicles due to leniency on the part of government, while in the same period a number of Asian countries acquired the technical know-how to manufacture complete vehicles with the help of Local Vendor Industry.

Under various schemes almost junk was imported from outside against the scarce foreign exchange in the name providing employment.

While commenting on import of CNG buses from India, Iftikhar Ali Malik said that only those assemblers should be selected who will give guarantee to invest in Pakistan, establish manufacturing plants, transfer the necessary know-how to Local Vendor Industry and also ensure buyback arrangements.

It is important to mention here that visiting Japanese Study Group has called on the Finance Minister and ensured to invest in Pakistan in vital sectors like Auto-Power and Infrastructure.
source:  www.nation.com.pk

Authorities should not ignore local auto industry when we have the capability to produce the high standard auto parts. these days when our industry already suffering from heavy taxes and power crises, governmental support could boost up the industrialists moral.

Pakistan’s vending industry is highly developed and modernized as it manufactures automotive parts and accessories of international standard. This was disclosed by former Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) M. A. Malik while talking to Business Recorder here on Friday.

He said that the quality and the standard of parts and accessories, manufactured by Pakistani vendors, was monitored and approved by the international licensees and principals. Malik said it was a matter of pride and prestige for Pakistan that the local tractor parts were being exported to European and American countries because of their high quality and standard.

He lamented that some elements were undermining the quality of Pakistani manufactured products for their petty motives and benefits. “The industrialists have invested billions of rupees in over 800 vending units to make Pakistan self-sufficient and exporter of tractors, cars and trucks,” he added. About the reported short supply of tractors in the local market, Malik said the tractor manufacturers had already contradicted such malicious reports.

“In their meeting with Federal Industries Minister Manzoor Wattoo recently, tractor manufacturers made it clear that anybody could buy any number of tractors from the market,” he added. Malik said the local manufacturers and vendors had the capacity to assemble at least 80,000 to 100,000 tractorslocally manufactured tractors, he should contact him. of the highest quality per annum, and if someone wanted to buy 100

Malik said that the price of the Pakistan-made tractor was the lowest in the region and the industry was saving millions of dollars in the foreign exchange. He said after huge investments in the local automotive parts and accessoriescars, trucks, tractors etc per annum. manufacturing units, they were in a position to provide auto parts to 0.5 million

He said the import of tractors at almost double the price of the locally manufactured tractors in foreign exchange, hence it would be a disservice to the local industry and hundreds of thousands of skilled, semi-skilled and other workers who get their livelihood from this essential industry. He said instead of relying on imports, the government should implement a plan for hundred percent deletion and transfer of technology of auto industry.

source: http://www.brecorder.com

No doubt, Pakistani auto vending industry is growing day by day.pakistan’s automotive industry is not only producing auto parts of high quality but also these parts are available for cheaper price. now auto parts industry exporting their products to all over the world, which is the proof of high standard of our auto industry products.

Can an individual residing in the UAE send 2 vehicles as gift to Pakistan? What is the proper procedure to be followed?

A) No. Only one new vehicle or one which is two years or less can be gifted to family member (father, mother, wife and children above 18 years age).