Recently the Competition Commission of Pakistan (CCP) conducted an intensive investigation into the working of the automobile manufacturers of Pakistan and found out that all the manufacturers were involved in price fixing of services and spare parts. It is important to mention that the automobile manufacturers of Pakistan have enjoyed special status in the past few decades, where the Government of Pakistan gave them many incentives to help them improve their production and eventually establish a 100% locally manufactured automobile.

Unfortunately the automobile manufacturers have used this good gesture to increase prices, reduce quality and in two decades have not even started 20% local part manufacturing. The CCP had previously caught the automobile manufacturers collaborating in getting illegal money from the buyers called ‘Own.’ The Musharraf led government had taken very strict actions against the automobile manufacturers, which had resulted in highly reduced prices of all cars in Pakistan.

The CCP in their latest investigation failed to check the quality of the automobiles. There have been reports about imported safety mechanisms being removed from the new cars, imported under CKD (Complete Knock down) or pre-assembled units from abroad. These safety features and other latest parts are replaced by unsafe or low quality parts, while the high quality parts are exported back to Japan.

This activity is evident from the second hand Japanese cars imported. Although the cars will have the same model, year and make, but on comparing it with the Pakistani manufactured car, one will find the secondhand Japanese car to have new safety features, while they are also be cheaper. I would like to request the CCP to investigate the CKD or Pre-Assembled parts imported by the manufacturers, and compare their quality to the parts already installed in locally manufactured cars. Important areas to check are safety features of doors, windows, brakes and other technological features like sensors, cameras, meters etc. I would also like to request the Karachi Port authorities and FBR to check and stop the re-export of the removed parts back to Japan, Malaysia etc.


Peshawar, October 24.