The government of Pakistan has granted greenfield status to 21 automakersto manufacture passenger vehicles as well as commercial vehicles under theAutomotive Development Policy (ADP) 2016-21.
Ministry of Industries & Production (MoIP) has stated that new automakersfrom Korea, Europe, China, and Malaysia have entered the auto industry,bringing with them a total investment of over $1.0 billion.
The MoIP further highlighted that these seven automakers have been givenmanufacturing certificates in the auto sector:
– United Motor Limited, – Regal Automobile Industries Limited, – Master Changan Motors Limited, – Lucky Motor Corporation Limited, – Hyundai Nishat Motors Limited, – Sazgar Engineering Works Limited, – Al-Haj Automotive.
The manufacturing facilities of other companies such as MG JW SEZ are underdevelopment. The total production capacity of Pakistan’s automotiveindustry has increased from 275,000 units to 418,500, up 52.2 percent,units a year. It is expected to increase further as some new car companiesare also inbound.
Foton JW Auto Park (Pvt.) Limited has been granted Greenfield Status underADP 2016-21 to locally manufacture Forland light trucks. Al-Haj BusCompany, Khalid and Khalid (Shacman), Dysin Automobiles (Sinotruck), andUniversal Motors (Higer Bus) are the major new entrants in the HeavyCommercial Vehicle (HCV) segment and are expected to start local assemblyoperations this year.
The government also defined a new tariff plan with the objective to curbthe misuse of the import policy. Furthermore, the reimbursements on accountof delayed deliveries have been made to the customers, and installation ofimmobilizers has been made mandatory in cars and Light Commercial Vehicles.
The Pakistani car industry has acceded to UNECE’s WP 29 Regulations underthe official symbol E-64, which binds it to follow safety and environmentalregulations for locally assembled vehicles.
According to Ministry officials, the Auto Industry Development and ExportsPlan (AIDEP) 2021-26 has been prepared based on learnings and experiencesgained from the implementation of ADP 2016-21. They added that the relevantdepartments are jointly improving the application of the AIDEP 2021-26 toensure further growth of the industry.
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