Automakers ignoring auto policy, says Jatoi
It seems that few local automakers are not abiding by the policy as they are not delivering the cars to the customers in sixty days as defined in the automotive policy 2016-21.
While giving an interview to one of the local media outlets, Minister for Industries and Production Ghulam Murtaza Khan Jatoi said that few of the local manufacturers are not following the auto policy in both letter and spirits as they are not providing the cars to customers in the sixty-day time frame as mentioned in the auto policy.
Read Also: Car premiums get all-time high in Pakistan
He further asserted that under the new automotive policy delay in delivery of car more than 2-months results in a discount @ Kibor+2 percent on the final amount. It would be worth mentioning here that at the start of this year the premium on cars reached all-time-high, while the delivery time of the vehicles also went up, which was also an apparent violation of automotive policy.
The government of Pakistan issued the new automotive policy for the year 2016-21 to attract more automakers into the country and also to give a sigh of relief to the consumers. Under the policy, the government was aiming to diversify the local automobile market and to lessen the delivery time of the cars while exerting pressure on existing brands to produce good vehicles.
The government under automotive policy 2016-21 also granted Greenfield and Brownfield statuses to few of the manufacturers such as Dewan and Regal Automobile Industries Limited (RAIL) to let them produce vehicles locally. Renault, Kia and Hyundai also came to Pakistan after the government announced the new policy. Moreover, Hyundai in collaboration with Nishat Motors has started to build its assembly plant in Faisalabad. And there are also reports that Renault is also in the near future would be setting its assembly plant in the same city.
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