Senate Displeased with Quality and Prices of Local Assembled Cars

Senate Standing Committee on Industry and Production has shown displeasure over the briefing of Advisor to Prime Minister on Commerce, Textile, industry and the Board of Investment Abdul Razak Dawood.

The committee has directed three automobile companies (Pak Suzuki, Toyota Indus and Honda Atlas) to furnish details in the next meeting on quality standards adopted by these 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.

Related: Pak Suzuki Posts 55% Decline in 9 Month Net Profit

The meeting that was chaired by Senator Ahmed Khan on Thursday, discussed the total number of vehicles sold in Pakistan, the amount of tax paid, details of spare parts produced locally and those imported from abroad and fulfillment of corporate social responsibility role by Toyota, Honda and Suzuki.

Abdul Razak Dawood while briefing to committee members told that PTI government would continue the previous (PML-N) government’s auto-policy and will not make any amendments. He said “Pakistan is a big country but we are far behind in car production from other countries.” Abdul Razak Dawood further added that the current government would increase the production within the automobile industry in the coming years.

Related: Newcomers Not Happy With Pak Suzuki Seeking Greenfield Incentives

He also 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 manufacturers.

While giving a reply on a public petition regarding the price increase, the ministry officials stated that prices of vehicles increased due to the devaluation of Pakistani rupee against the US dollar. The car manufacturers operate on three to four days inventory and impact of rupee-dollar parity is transferred immediately, as stated in the documents.

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