I have imported a Honda Accord CF3 directly from Japan. This was in 2007. It was a great car, and is the best one I have owned (I have not owned many high-end cars, not yet at least! ) … I have other goals for life etc for the time being.
The reason CarAdvice.pk have had a few posts on the import of cars to Pakistan is because of the recent politically-driven bill of allowing import of 5 year old cars into Pakistan. And what do you know, the government has finally re-considered and have now allowed the import of 5 year old cars into Pakistan.
Now, the ‘automobile industry’ of Pakistan, as expected does not like this:
The Pakistan Automobile Manufacturers Association (PAMA) and Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM), the assemblers of cars and the auto parts vendors, have expressed dismay over the government decision to allow import of up to five-year-old cars that would retard the gradual growth the auto sector was witnessing after two years of turmoil.
I have mentioned why this decision is GOOD for the consumer here.
But, as mentioned in The News (a daily newspaper), there is a rationale behind the recent decision to allow the import of 5-year-old cars:
The cabinet has finally taken a good decision to allow the import of five-year-old cars. The lack of competition in the market, owing to its small size and absence of economies of scale, make the car assemblers make money at the cost of ordinary people by increasing prices whenever the Japanese yen rises or the rupee falls. Ideally, we should have a developed car industry but it can not develop in a country with a small market size. To put it in perspective, China produced more than 13 million cars in 2009, Japan almost eight million and the USA around six million, compared to a little over 100,000 in Pakistan.
It would be foolish to expect the car assemblers in Pakistan not to raise prices when the yen rises or the Rupee falls further, because most of the car components for assembly are imported from Japan. However, if the size of the car market increases, there would be greater need for spare parts and Pakistan can make good-quality car parts, which could also be exported. Later on, if the numbers of cars sold in the country passes a certain threshold; we can also make good-quality cars. Until then the focus should be on increasing the market size and bringing cars within the reach of the ordinary people.
So, do you guys think that this is a good decision? I know I am happy because I don’t want to pay 2.0 million rupees for a 1.8 sedan when I can pay less for a four-by-four. Let’s hear your comments people!!!