PAMA calls out the Federal Govt. for favoring ‘one specific car manufacturer’. Who is it and why?
The latest Auto Development Policy paved the way for several new companies to enter the Pakistani auto market.
The latest Auto Development Policy has paved the way for several new companies to enter the Pakistani auto market. In the last few years, auto manufacturers like Regal Motors, KIA, Hyundai, Proton, and Changan started their businesses in the country.
During the 34th meeting of the Auto Industry Development Committee (AIDC), the Pakistan Automotive Manufacturer Association (PAMA) expressed some of their concerns. According to reports, PAMA stated that they are concerned that the federal government favors one specific car manufacturer, a fresh entrant in Pakistan.
The PAMA official said:
The meeting minutes indicate that the government is favoring an unidentified car manufacturer.
Talking about the auto company, he shared:
There is a new entrant in the market, selling and booking its vehicles without establishing a production plant in the country. Under ADP 2016-2021, the new entrants can import only 100 CBU units at 50% duty for marketing and production purposes. Meanwhile, the companies have to pay complete duty on the 101st vehicle.
The PAMA official continued to state:
However, that particular manufacturer claims to have sold a lot more than that number.
PAMA wants the Govt. to End Benefits for New Car Manufacturers?
According to sources, PAMA members have asked the Engineering Development Board (EDB) about what date the benefits for new entrants will end under the ADP. As per reports, PAMA has sent a letter to the EDB in this regard.
Sources revealed that the letter suggests PAMA is not happy with the new entrants’ benefits. In the letter, PAMA wrote:
We request a ‘clarity’, when the newcomers’ benefits will expire. Under the ADP, the new entrants are allowed a concession period of 3 to 5 years, depending on each unique case, starting from the production date.
The letter further read:
However, these new entrants are reportedly submitting revised business plans for the new models. For those who have already started commercial production, this revised plan may circumvent the incentive period that could be more than three or five years.
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