Auto policy to attract European car makers

ISLAMABAD, July 25: The government expects major investments from European car manufacturers including Renault, Volkswagon and London’s Black-Cab in response to its new auto policy that will break the "monopolistic culture" being followed by the Japanese auto firms.

Informed sources told Dawn that the "Auto Industry Investment Policy - New Entrants in the Car and Light Commercial Vehicle Sector" has been designed to do away with the distortion in the market created by the Japanese auto firms. "The industry has developed a monopolistic culture, is averse to fair competition and jealously guards against any attempt by a new player wishing to enter the market, despite a large demand-supply gap creating distortions in the market," writes the ministry of industries and production.

It says that the auto industry in Pakistan and car and light commercial vehicle sector was dominated by the Japanese companies "which follow similar policies on manufacturing, introduction of models, technology and prices". [...]