Scrappage Centers Hit Roadblocks

Overnight changes in the government’s automotive policies have hindered the business of wreck yards, forcing many to close their centers and fire employees. A case in point is the restrictive decisions regarding car imports. Auto importers used to be required to send a number of clunkers to the scrap yard in return for bringing vehicles into the country. During the last fiscal that ended in March, parallel to profound changes in government policies over auto imports, a downtrend was witnessed in the business of junkyards, leading to closure of numerous centers and dismissal of many workers. Furthermore, in late June the government announced an outright ban on auto imports which is certain to further squeeze the business of scrap yards, reported local automotive website Asbe Bokhar.