Import ban on used vehicles to leave the marketplace uneven
The government's intend to impose a ban on the import of reconditioned vehicles to promote local developing and assembling will generate an imbalance in the domestic marketplace, according to Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida).
Manufacturing automobiles in Bangladesh would be a subject of national pride and Barvida encourages this initiative, said Abdul Haque, president of the association.
But the government should offer priority to the decision of customers prior to going for such a ban as 85 % of the passenger cars in Bangladesh at present are imported reconditioned automobiles, he said.
The proposed policy will destroy competition between the importers of reconditioned and brand-new cars, he said.
"The government didn't even add a representative out of this sector while preparing the draft insurance plan."
Barvida will give its observations on the proposed Automobile Plan 2020 to the industries ministry today.
As per the proposed plan, imports of reconditioned automobiles will be phased out over another five years in a bid to inspire investments in the local assembly and produce of motor vehicles.
As such, the government will formulate the 2020 Automobile Industry Development Policy, a draft of which has previously been distributed to various stakeholders for finalisation.
Currently, state-run Pragati Industries assembles cars created by Japanese automaker Mitsubishi Motors while PHP Motors, a sister concern of the PHP Family located in Chattogram, manufactures cars made by Malaysia's PROTON Holdings Berhad.
Besides, Indian automotive giants Tata Motors and Mahindra & Mahindra recently showed fascination to go for similar partnerships with area manufacturers to grab a bigger slice of the growing automobile industry in Bangladesh.
"This is a very clear conspiracy completed by a vested quarter that only wants to secure their own pursuits," said Mohammad Shahidul Islam, secretary standard of Barvida.
An immediate ban about import of reconditioned vehicles would be a suicidal stage for the government as it directly earns at least Tk 4,000 crore in earnings from import duties alone, he added.
Besides, Barvida also assists in the country's economic creation by paying both value-added and tax.
Over the past three years, about Tk 20,000 crore has been invested in the sector, which created at least 30,000 direct employments.
"The federal government should try to create a competitive market for the investing of new or perhaps reconditioned automobiles in consideration of the clients," Islam stated, while citing the circumstance of the reconditioned car marketplace of Australia, the united kingdom and the US.
Islam also alleged that imported brand-new cars usually do not comply with global specifications. "Besides, these vehicles do not originate from their mom countries but on the other hand imported reconditioned cars are from their countries of origin."
Based on the secretary standard, now only 'Euro 6' emission standard cars are allowed to operate in produced countries and imported reconditioned car match this standard while most brand-new autos in Bangladesh happen to be yet meet the requirement on carbon emissions.
He continued to advise the government to collection up an excellent control institute that could regulate the import of brand new or reconditioned passenger cars found in a bid in order to avoid the adverse environmental impression of carbon emissions.
Importers opt for Japanese cars that are sophisticated, environment-friendly and cost-effective, said Mannan Chowdhury Khasru, ex - president of Barvida.
Besides, Barvida has generated market for reconditioned cars in Bangladesh to help meet customers' demand.
"We usually do not stand against the making of brand-new vehicles in Bangladesh but instead, we wish a competitive market rather than phasing out imports of reconditioned autos," Khasru said.
"The federal government should create an even playing field for locally produced autos and imported ones so that the marketplace may automatically decide the industry's upcoming," he added.
In this regard, the former Barvida president demanded withdrawal of the proposed ban on reconditioned car imports in the automobile policy for 2020.
