Auto industry calls for ban on imports of used car parts

WEB DESK: In a recent meeting, the Auto Industry Development and Export Committee (AIDEC) discussed the implementation of a ban and penalties on the import of used auto parts.

This meeting was chaired by Federal Minister for Industries and Production, Rana Tanveer Hussain, and attended by other government officials as well as representatives from the automobile industry.

The auto industry representatives expressed concerns over the challenges in exporting vehicles from Pakistan due to the rising duty and tax structure.

They emphasised the urgent need to sign Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs), along with the establishment of consistent policies to facilitate the localisation of parts and components.

This, they argued, is essential to enhance the competitiveness of Pakistan’s 2, 3, and 4-wheeled vehicles in the international market.

Meanwhile, auto parts vendors raised issues related to the localisation process. They pointed out that when a part is localised, it often becomes obsolete, leading to significant losses for vendors.

To mitigate this, they suggested that once a part is localised by one Original Equipment Manufacturer (OEM), it should be utilised by other OEMs requiring similar parts. They also recommended that the localisation of parts and subcomponents be time-bound.

In concluding the meeting, Minister Hussain urged the auto industry to focus on improving the quality, pricing, and export potential of their vehicles in the international market.

He also instructed the formation of a sub-committee to review and address the industry’s issues on a quarterly basis, particularly concerning the regulatory support needed for exports.

Additionally, he directed the development of an Auto Parts Manufacturing Policy aligned with related industries, emphasising that localisation would lead to more competitive pricing for Pakistani-made vehicles in global markets.

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