LAHORE - The government has failed to provide cheap cars to local consumers even after allowing imports of five-year-old used cars as their prices are almost same as of the locally-made new cars. Numerous incentives of depreciation etc are being abused by a lobby while denying benefits to local consumers. According to the manufacturers, the government initiated measures to bring car prices down but was misled by traders that made the most of the benefit and flooded local markets with five-year-old cars whose prices are not too low than branded new made-in-Pakistan cars of different categories. They said that the local market is flooded with used imported cars but their rates are extremely high if compared with their age. As per the statistics, as many as 1,375 Vitz, 981 Corolla and 428 Premio were imported in 2010-11 along with other brands and their prices have increased up to 100 percent as compared with last 2 or 3 years. While 3-5 years old Vitz is available between Rs0.8m to 1.1m while its parallel version Suzuki Swift is marketed by local manufacturer almost at the same price, they said. A used imported 4-5 years old Suzuki Alto with an engine capacity of 650 cc depending on condition, is being sold in the local market at Rs700,000 to Rs750,000 whereas customers could buy brand new locally-made Alto with 1000 cc engine for this much money. Similarly, a 3-year-old imported Corolla is being sold at Rs1,350,000 whereas Pakistani-made same new model XLI is available at around Rs1,400,000. No sensible consumer would opt for old used cars on such high prices having no guarantee and service availability without spare-parts supply. According to the local manufacturers, mostly luxury cars are being imported which is depriving the government of precious foreign exchange and there is no proper taxing system intact which is helping traders to befool consumers and the government alike. The government definitely has all the information in this regard and should have reprimanded the dealers that assured that the rates of used cars would be much lower to benefit local consumers, they added. They expressed their dismay that the decision of allowing import of used cars up-to five years old with several relaxation like increasing monthly depreciation from 1 percent to 2 percent and accumulated depreciation from 50 percent to 60 percent is causing embarrassment to the government which allowed the imports to make cheaper cars available to consumers but it has not happened in reality. Industry sources pointed out that the government was deceived by trader mafia to believe that the rates of locally-produced cars are very high. They said that the car assemblers provided the government with authentic data to prove that the vehicles rates in Pakistan are in fact lower than many countries including India and Thailand but the car dealers successfully tricked the government and resultantly the government relaxed the import of used cars up-to five years old. According to a local manufacturer, there is no comparison between a locally-made new car and a 5-year-old imported used car as there is no after-sales service for the an imported used car whereas a locally-made new car is provided with warranty along with after-sales service. There is also no supply of spare-parts of used imported cars by the traders whereas local manufactures ensure ample availability of spare-parts of their brands for long years for consumers satisfaction, he added. They warned the government that local OEMs and vending industry would be forced to shut down their manufacturing units and resort to trade of cars, motorcycles and trucks if the import of used vehicles is further relaxed in the upcoming Trade Policy for 2011-12 by allowing free import of vehicles. SALMAN ABDUHU