Daily Times

Rejecting the claim of some automobile companies that they were producing 70 of their cars parts locally, a legislative body of Upper House on Thursday demanded details to the total number of vehicles sold, amount of tax paid, detail of spare parts produced locally and imported from abroad and fulfillment of corporate social responsibility role by Toyota, Honda and Suzuki motors.

The senators termed their presentation incomplete because it could not related to the ground reality in the market. Members of the Senate Standing Committee on Industries and Production said if any company produced 70% locally manufactured cars then why its prices could not come down.

The briefing could not satisfy the members of the Committee who found it to be incomplete and away from reality. Chairman Committee Senator Ahmed Khan directed the three automobile companies to furnish detailed briefings in the next meeting after ten days on the quality standards adopted by the companies in relation to regional practices, the price ranges with plausible reasons, the percentage of parts manufactured locally and those imported from other countries as well as the export potential of cars and the tax paid by the companies measured against their income and profits.

The committee also directed that senior officials from the concerned car manufacturing companies should come in next meeting. The meeting, which was held under the Chairmanship of Senator Ahmed Khan here at the Parliament House and was attended among others by Senators Kalsoom Parveen, Naseebullah Bazai, Aurangzeb Khan, Muhammad Ali Khan Saif, Anwar Lal Deen, Sitara Ayaz, Advisor on Commerce and Industry Abdur Razzaq Dawood, Secretary Industries and Production and officials from ministry and automobile companies. The Advisor expressed his concern over not being able to satisfy the Committee and suggested calling the companies before the committee as well as visiting the manufacturing plants of the automobile industry.

The Committee Chairman called upon the ministry and automobile companies to make use of the new technologies that were being used worldwide and also make the automobile industry environment friendly to reduce the adverse impacts resulting in severe climatic change.

The Advisor Abdur Razzaq Dawood that the government of Pakistan was stressing on indigenization of cars for the last 25 years and so for Pak Suzuki claimed that they produced car with 70 percent locally produced parts. The tractors were produced with 95 percent locally produced parts and motorcycle with 85% locally parts. However, the advisor said if members of the committee could not satisfy then they can visit the plants and ordered for another meeting of the companies.

During presentation, the committee was informed that under the Automotive Development Policy (ADP 2016-21) 13 new automobile companies expressed their willingness to invest in Pakistan. Some companies were belong to Korean, French, Chinese and Japanese makers.

The committee was informed that the locally manufactured parts in cars include seats, dashboard, tyres, rims, batteries, sheet metal parts including body, doors, lights, carpets, rubber parts, air conditioner, steering wheels, cast and machined parts, forged parts, precision components etc. Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) represents vendor segment/parts makers of cars, motorcycles, tractor, trucks and buses. The committee further informed that mostly engine parts and some critical parts which require heavy investment and hi-tech parts including sophisticated engine components and transmission parts were being imported. The imports were being carried out in the form of kits which were also known as CKD kits.

Published in Daily Times, December 28^th 2018.