Daily Times

‘Consistent policies, localization, government support and lower taxes will move Pakistan Auto Industry forward and contribute to the country’s growth. ” Speakers from auto industry shared these views while speaking at the inaugural ceremony of Pakistan Auto Show (PAPS) 2019 at Expo Center Karachi.

The show is being held from April 12 to April 14 at the Expo Center, Karachi by Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) where OEMs and auto part manufacturers are showcasing their products and expertise.

Meanwhile, Pakistan Suzuki Motor Company Limited (PSMC) has unveiled Pakistan’s first locally-manufactured 660cc engine displacement car at the PAPS 2019. Earlier this month, Pak Suzuki discontinued the production of Suzuki Mehran after 30 years. Pak Suzuki introduced three variants of Suzuki Alto 660cc which includes: Suzuki Alto VX (Base model, without AC / Power Steering), Suzuki Alto VXR (With AC/Power Steering), Suzuki Alto VXL AGS (with AC & Auto gear shift). The company claims Alto 660cc is fuel efficient and spacious car with modern design and features. The company also offers 3 years or 60,000km warranty.

The booking of Suzuki Alto 660cc has opened for corporate clients and expected to deliver by June 2019. Corporate clients can book the car in Rs 500,000/-.

Chairman PAAPAM Muhammad Ashraf Shaikh and Chairman PAPS 2019 Mashood Ali Khan said at PAPS 2019, PAAPAM has established substantive business generations model for everyone including PAAPAM members this year’s exhibition as well as for the representatives of the Allied Industry.

Sr. Director Corporate Strategy and Regulation Affairs, Indus Motor Company, Tariq Ahmed Khan said “Pakistan economy has a promising future. With improved governance and fiscal policies, optimum utilization of natural resources and increasing skills of young dynamic human capital, shining place for Pakistan is not a dream. With lowest motorization levels of 18 per 1000, the potential of achieving 500,000 is not far away.”

“We are working to the best of our capabilities to realize the ADP 16-21 vision. But to achieve this vision, a vibrant domestic manufacturing industry is needed under conducive economic conditions,” he added.

The booking of Suzuki Alto 660cc has opened for corporate clients and expected to deliver by June 2019

He urged the government to continue its consultation process with industry and remove barriers which are shaking consumer confidence. “One such barrier is 10% FED application on vehicle above 1700 vehicles,” he pointed out and requested for its removal to encourage local vehicle manufacturing.

Meanwhile, CEO, Kia Lucky Motors (KLM), Asif Rizvi said on the occasion that “KLM stands fully committed to localization. “The pace of localization may be a little slower but not because of the concessionary duty regime or a lack of desire to localize but only due to low volume at the start and simultaneous launch of multiple products not attempted previously,” he explained and requested the EDB to now link the very successful tariff based localization regime to volume, so that high technology products having low volume can be introduced viably.

He said that In order to unleash this huge potential in the auto industry, Pakistan needs to take some measures. “Today 30-38% of the value of a car assembled in Pakistan is collected by the Government in the shape of various levies. While I cannot advocate lowering of duties on CKD kits only as this would have detrimental effects on the viability of localized parts, it can be advocated to reduce CKD duty and an equivalent reduction of duty on components that go into manufacture of local parts,” said CEO KLM adding that the safest reduction of levies would be in the form of reducing sales tax and FED.

“Government should take measures to increase volume so that the revenue to the government is earned by smaller levies on larger volume, rather than larger levies on smaller volumes. The former also will serve to increase localization, employment and taxes,” he added.

He also revealed that KIA Lucky Motors (KLM) is gearing up to start booking of vehicles in June 2019 and launch its SUV, KIA Sportage by August 2019 and 1000cc car KIA Picanto In October 2019.

Meanwhile, Chief Executive Officer, Atlas Honda Limited, Saquib H. Shirazi talked about the future of the auto industry and highlighted growth in recent years despite challenges. He said auto industry is a well structured employment provider and from remote area like Layyah, Punjab, to big cities it provides jobs to skilled and unskilled labour.