A 'great' policy.
Byline: Aamir Malik-Karachi
THE new auto policy rightly has its focus on economy of scales and localisation of the industry in order to bring down manufacturing costs. It also envisages export of locally-assembled vehicles that can bring in valuable foreign exchange.
The tax and duty concessions, especially on small and electric/hybrid vehicles, will help in making the locally-assembled cars more affordable. For the first time in the last many years, car prices in the country have come down due to policy incentives.
A key success factor for this policy will be the seamless execution of all the measures announced by the government, including timely legislation to cover all the new tax and duty incentives. Strict enforcement of the announced initiatives to curb negative market patterns will also need to be ensured by the government. In the past, a number of such curbs were announced, but people somehow worked around them.
The auto assemblers also need to reciprocate by working closely with the government and by ensuring that the objectives of the new policy are fully achieved. Proper implementation of the new policy will help put the local automobile industry on the path of development and growth.