Government finally allows new car manufacturers

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News have been coming out quite regularly regarding the government announcing plans to allow new car manufacturers to begin their operations in Pakistan however, delay was caused due to the late announcement of the new entrant policy by the government.

Now though, finally the new entrant has been announced the new car manufacturers are given the green light.

Due to the exorbitant prices charged by the current big three car assemblers in Pakistan,federal ministry of finance, economic affairs, statistics and revenue finally give the go ahead to new entrants to import complete knock-down (CKD) kits at at custom duty rate of 32.5 per cent and 20 per cent in case of cars and Light Commercial Vehicles (LCVs), respectively.

Those manufacturers deemed new entrants by Engineering Development Board (EDB) will have the concessional duty structure for three years, the additional customs-duty leviable under this notification shall not be charged on sub-components and components, imported in any kit form needed by the assembler.

Moreover, the notification further said:

(i) The new entrant assembler or manufacturers shall chalk out a plan for progressive manufacturing of the vehicles spreading over a maximum period of three years within which, he shall catch up with the localization or indigenisation level of respective vehicles, as approved by Auto Industry Development Committee (AIDC) of EDB;
(ii) The continued non-levy of said additional customs-duty shall be contingent upon the achievement of indigenisation as determined by AIDC of the progressive annual EDB. In case of any material deviation by the new entrant, AIDC shall determine the stoppage or withdrawal of the incentive of non-levy of said additional customs-duty, allowed as such, retrospectively;
(iii) The new entrant shall abide by all the terms and conditions laid down in the separate notifications issued by the ministry of industries and FBR for assembly or manufacturing of the said vehicles under Auto Industry Development Programme (AIDP) and Tariff Based System (TBS); (iv) The additional customs duty shall be levied on the sub-components and components which become indigenised by the new entrant assembler or manufacturers, in accordance with the said plan for progressive manufacturing.”

In all hope of seeing some more options under our belt when we go to buy a car, we believe this is a jolly good step towards progression and break the influence of the current big three however, people will have to do more on their part by not giving into resale but rather one that matters; “safety”.

Baber K. Khan

An auto enthusiast trying to bring car media mainstream.

  • it is a great initiative if also implemented…

  • adil khan

    will be a great step in breaking the monopoly of the three giants of the countries, if executed IN time…

  • It is good decision of Gov. to break the monopoly of others Car assemblers,it must be start

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