In an interesting turn of events, the Ministry of Industries and Production will be giving a Brownfield status to Dewan Motors and Dewan Dachan Motors. The special status is being given to Dewan Motors after the intervention of Ghulam Murtaza Khan Jaoi – Minister for Industries and Production. Moreover, Auto Industry Development Committee also took a unanimous decision in this regard.
Brownfield Investment is defined as revival of an existing assembly and/or manufacturing facilities, that is non-operational or closed on or before July 01, 2013 and the make is not in production in Pakistan since that date and that the revival is undertaken either independently by original owners or new investors or under joint venture agreement with foreign principal or by foreign principal independently through purchase of plant.
- Import of non-localised parts at 10 percent rate of customs duty and localized parts at 25 percent duty for a period of three years for the manufacturing of Cars and LCVs.
- Import of all parts (both localized and non-localised) at prevailing customs duty applicable to non-localised parts for manufacturing of trucks, buses, and prime movers for a period of three years.
The only reason why Dewan might be looking for incentives is if they are once again looking towards assembling vehicles locally in Pakistan. Currently, all they sell are few of BMW models, and all are CBUs. Previously, Dewan was assembling Hyundai and Kia cars. But that venture bust and now Kia is joining hands with Lucky Group and Hyundai is going forward with Nishat Group. So it is safe to say Dewan will be choosing some other foreign carmaker to work with this time around. It is possible they might even start making BMW cars locally. But that is just wishful thinking.
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