Very well put. Totally agreed. 👍

https://carspiritpk.com/can-we-settle-the-localization-debate-with-this/

Monroney label is the way to go. “%age localization” should be completely transparent … it should not be a privileged, niche, classified, secret or obscure information only to be extractable by a government committee or court under subpoena. Just like other countries, localization %age is a KPI of patriotism – more so in Pakistan where they have been spilling poison about used JDMs ever so often – so when they ask the consumer to be patriotic and buy a “local assembled CKD made of wholly imported spare parts”, they must also be held responsible to declare the itemized localization content specific to each and every specimen they produce, this can happen automatically with the Monroney label.

Expanding on what you said:

“For smooth development of local parts, the trial runs are conducted months before the start of mass production.”

Which parts are they referring to? Which brands are they referring to? Brands like Kia, Hyundai, Prince and Changan etc. have been selling locally for some time now. How much have they localized. Or are they still only stuck to the old jap three?
Why is the government not asking about that? why have they been so slow to localize parts for the newer brand on the market. What is their progress? ask them that all important question.

In the end, like all of their other “requests”, it is always a big fat excuse. None of their claims are true and none of their reasons are real, they are only making easier paths for themselves to import more and more CKDs while increasing their profit margins.

Agreed! The more shenanigans we see from these assemblers increasing our import bill by the month, the more JDM imports seem like the final best solution for our auto industry.

Yeah right… I call BS. They just want more freedom in importing more CKD kits to sell. They have, had and will have ZERO intention of “manufacturing” any of their launched vehicles, whether it be 5 years old or 3 decades old.

A couple of blogs ago, I pointed out how PAAPAM is basically just a puppet for PAMA, and it has zero purpose in the auto industry.

Now look at this! How ironic for a parts MANUFACTURING association to request the government to allow more CKD kits to be imported!!

“the industry is bracing for introduction of new car models“

oooo….oooo
Lie of the century!?

Who is bracing for new models?
Picanto – last gen.
Sportage – last gen.
Corolla? No chances of 12th gen till at least 2025. https://carspiritpk.com/will-imc-skip-the-12th-gen-toyota-corolla-in-pakistan/
Civic? Already the latest gen.
City? Recently launched in 2021 a model which was globally retired in 2019.
BR-V? No chance to get the 2nd gen, already 1st gen is too expensive and not selling much.
Bolan and Ravi? 44+ years old models with no chances of changing. https://carspiritpk.com/pak-suzuki-to-finally-say-goodbye-to-ravi-bolan/
Swift? Latest model launched recently.
Alto? 2014 model launched in 2019 in Pakistan, globally retired in 2021 but after 5 years in Pakistan the only upgrade is an additional VXR AGS trim level, no other features in sight https://carspiritpk.com/pak-suzuki-alto-sets-another-sales-record/#comment-10128.

The list could go on and on but which “new models” are they deluding about?

Again PAAPAM is being nothing but a faithful puppy of PAMA just like in 2019 when the imports were nearly banned https://carspiritpk.com/used-car-imports-shaken-due-to-latest-policy/ (20 Jan 2019).

Using the figures from above articles, in FY 2020-21 US$ 386mn were spent for importing 21000 vehicles. Out of these 56% were small cars below 1000cc, a market sector for which the local assemblers have not many options and they don’t even want to cater for. 15% vans, surprise surprise none of the local assemblers make any 14-seater or 19-seater commuter vans. All that is available is CBU imported HiAce!

Given today’s exchange rate at 236 per, 386mn$ = PKR 93bn. At the same time the CKDs were 1.6bn$ = 385bn PKR if multiplied by today’s forex rate, and 13mn$×12 months also comes to 1.56bn$ which means they are also using the same figure. If the local “assembling” industry died and only used JDM imports come, the formula will be 386÷21000×(270000+21000)=5.349bn $=1289bn PKR, but then these vehicles will be available instantly with zero waiting time, will be full-option, fuel-efficient, safe and latest technology. Mind you the 386mn $ figure is because import of more than 3 years old model is banned. If older models will be allowed, people would buy a 10 or 15 year old JDM which by the way is much better in quality, durability, rust-proofing, comfort, safety, fuel-efficiency and features than the “zero meter obsolete designs” assembled locally, that’s how it would never touch that 1289bn PKR figure.