KARACHI, May 9: All-Pakistan Motor Dealers Association Chairman H M Shahzad has said that automotive imports from India should be allowed as the local industry is unable to provide cars at low prices.

In a letter to the commerce ministry, he ruled out the possibility that consumers would get low-priced locally assembled cars as local assemblers did not achieve deletion targets, the only way to see price reduction in cars.

The Tariff Based System (TBS) has further given lease to local assemblers to stop working on localisation, he added.

Shahzad, in the letter, said that local car assemblers are taking full payment on booking of cars and taking months to deliver the cars.

He said the local industry would only face stiff competition in prices as Indian cars have achieved 100 per cent deletion targets.

He urged the government to open trade of automobiles from India in the larger public interest.

Meanwhile, the auto industry representatives at a meeting on Monday with Engineering Development Board (EDB) on new auto policy (AIDP-II) for 2012-17 failed to reach any consensus to finalise the auto policy draft, to be sent to Cabinet for approval.

The EDB stuck to its anti-industry proposal of massive reduction in tariff regime, showing reluctance to support protect local manufacturers’ interests despite Industries minister’s clear directives.

Chairman Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) Syed Nabeel Hashmi said that Senior Industries Minister Ch Pervaiz Elahi had assured PAAPAM and PAMA that government would protect interests of the local industry before finalising any decision.

Although issues pertaining to tractors and motorcycles were somewhat agreed upon. The EDB, however, raised a new issue, proposing complete elimination of SRO 693, which is the pillar and on which rests the very existence of the vendor industry.

Showing his disagreement, PAAPAM chairman said that the proposal was totally unacceptable to the parts makers.

Whilst PAAPAM welcomes and supports facilitation of new entrants, the association cannot accept a proposal to import CBUs which itself shall negate the new entrant policy.

“We are ready to reduce tariff protection on components of auto parts manufacturing to facilitate new entrants and current players so the industry could become more variant and ultimately common man could avail quality products at competitive prices,” observed PAAPAM chairman.

Nabeel informed Pervaiz Elahi through a letter that EDB officials exerted tremendous pressure on auto industry representatives to agree to reduction of CBU tariffs of passenger cars, on the ground that these would replace used cars.