Auto assemblers demand level playing field

The auto sector has demanded that the government implement measures to curb the rising imports of used cars, which are not only undermining local production but also instrumental in transferring forex through the grey channel. In its budget proposals to the Federal Board of Revenue (FBR), the auto sector said that during 2022-23, the industry imported parts amounting to $1.57 billion and all the payments were made through the banking channel. It added that payments to import used cars were made through the ‘grey channel’ for transferring foreign exchange. Indus Motor Company Chief Executive Ali Asghar Jamali said that 13 brands currently produce over 40 models in the country, and their combined capacity is 500,000 units annually. However, the influx of imported used cars continues to pose sustainability challenges for the local industry. “The automotive industry, including vendors, provides up to 5 million direct and indirect jobs, whereas the number of jobs provided by the importers of used cars was negligible,” Mr Jamali added.