Morris Garages (MG) Motors has been the talk of the town since its last year’s debut in Pakistan. Its first SUV, the MG HS, is already on the roads and the company has teased to launch two more SUVs (the MG ZS and the MG ZS EV) very soon. However, the automaker is selling only CBU units of these cars, imported from China. The good news is MG Motors has recently acquired Greenfield Status under the Auto Development Policy 2016-21. And that means, just like other international automakers, MG will now start the production of locally assembled CKD units of its cars in Pakistan.
MG held the ground breaking ceremony of its assembly plant last year. The plant is currently under development in Lahore and will have the production capacity of 40,000 cars per year.
The Greenfield Status in Pakistan
Under the Automotive Development Policy (ADP) 2016-21, a greenfield status is granted to international car manufacturers to enter the Pakistani market. This greenfield status allows the company to set up its vehicle assembly plant in the country. It also offers the automaker some tax incentives.
Under the Auto Policy 2016-21, the automaker can import 100 CBU units of each car variant with 50% concession in Customs Duty.
Many other automakers have already got the greenfield status under the ADP 2016-21. Two South Korean companies, Kia and Hyundai, a Chinese automobile manufacturer, Changan, and another local Pakistani auto brand, BAIC, all have it. They are now actively assembling their cars in the country. And now, MG Motors has joined the club of these “greenfield manufacturers”.
MG Pakistan has been teasing the launch of two SUVs for the past year. Now that the company has the greenfield status under the ADP 2016-21, it will definitely bring those SUVs in the market before June 2021. (because that’s when the policy will expire).
The MG HS has already received an overwhelming response in the local market. Pakistanis are loving this SUV and are looking forward to the MG ZS and MG ZS EV. With the opportunity of local assembling of its cars, MG Motors will surely make a name in the SUV segment of Pakistani auto market.