According to Customs Today report, some Japanese cars haven among the top selling auto brands in Australia for the last two years, leaving behind the sale of historical favourites European and American brands. The Toyota Corolla has emerged as the world’s biggest selling brand with more than 40 million units sold since 1966 despite tough competitors from within Japan and South Korea.
The question is – where we stand. Fortunately, all kinds of vehicles are manufactured in Pakistan, but unfortunatelythe successive Pakistani governments have always responded reluctantly to the local auto industry which has the potential not only to attract billions of dollars foreign investment, but can also capture the Middle Eastern and African auto markets. In Pakistan, over 200,000 people are directly engaged with the auto industry while and millions of others are indirectly involved in the business.
The world economists see recession in Japan and even Chinese growth is slowing down, lending a chance to the developing countries like Pakistan to get a share in the world auto market. So far, various brands of Japanese and Korean cars are being assembled in the country, but the industry heavily relies on essential parts directly imported from the parent companies. It seems the local industry still has to go a long way to work free of any foreign assistance and sustain a place in the world auto market.
Though the government has taken various steps to encourage local and foreign investment, develop indigenous technology and produce high-grade components at home, but it still has to maintain standards of quality and stability of the industrial environment.
On another note, the middle class of the country is growing at a fast rate and the local auto industry will have to keep up its momentum to fulfill the local demand. The State Bank of Pakistan and Competition Commission of Pakistan are in favour of importing used cars, which is a good decision but a short solution to the chronic problem. There is a need to launch a stimulant program for the auto industry to attract investment to develop the industry as it is heading toward stagnation.
The time is changing and a positive change in the local economic outlook of the country is the need of the hour. The auto industry is passing through various challenges and if Pakistan is able to manufacture fuel efficient cars, it can dominate the world auto industry. Instead of looking toward the West or Japan for new technology, it is a good opportunity for the Pakistani scientists to find an alternativeto curtail reliance on petrol and gas. It is time to think for the revival of the industry.
