THE past 15 years have proved to be quite a bumpy ride for the country’s automobile industry which has seen many ups and downs since the late 2000s. The last three years have been particularly bad for the industry which is undoubtedly one of the most protected sectors of the economy. Carmakers are often criticised for the high prices of vehicles and their poor quality and missing safety features, delayed deliveries, the exorbitant premium buyers are forced to pay and so on.
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In their defence, the manufacturers have always blamed the massive government taxes that amount to over 40pc of the total price in certain cases and very low economies of scale as only 17 out of every 1,000 Pakistanis own a car compared to 77 in Indonesia, 281 in Thailand and 70 in India. The import of cheaper, used cars under various schemes for overseas Pakistanis is also said to have suffocated local car production. While the government has made the import of used cars difficult, it has significantly
Pakistan Will Get Lots of Electric Cars by the End of This Year
The expiration date of the Automotive Development Policy (ADP) 2016-21 and the release date of the 2021 budget is drawing closer. Meanwhile, the government is preparing to welcome a paradigm shift in the local automotive industry.
While discussing the matter with the media, the Special Assistant to the Prime Minister (SAPM) on Climate Change, Malik Amin Aslam, stated that Pakistan will have a huge influx of Electric Vehicles (EVs) by the end of 2021 after the introduction of the Automotive Industry Development and Export Plan (AIDEP) 2021-2026 and the new EV policy.
Pakistan’s new auto policy expects cheaper cars, increased production
5 hours ago Picture used for illustrative purpose.
As the current Auto Development Policy (ADP 2016-21) is about to end in June this year, the government is preparing a new auto policy that will focus on facilitating the manufacturing of low-cost cars and incentivise auto exports.
According to multiple industry sources, roughly 45 per cent of a car price that a buyer pays goes to the government in the form of duties and taxes. The government charges duties on imported CKDs (completely knockdown units), the auto parts used in assembling cars.
The Customs duty on import of localised parts is 45 per cent. The duty on non-localised parts is 30 per cent. There is an additional 7 per cent duty on the import of parts. Federal Excise Duty on cars: 2.5 per cent on cars up to 1000cc; 5 per cent on cars between 1000cc and 2000cc; 7.5 per cent on vehicles above 2000cc; and Along with this, there is a 1
Pakistan’s new auto policy: Expect cheaper cars, increased production
Country to produce mobile phones too SAMAA | Shakeel Ahmed - Posted: May 11, 2021 | Last Updated: 3 days ago SAMAA | Shakeel Ahmed Posted: May 11, 2021 | Last Updated: 3 days ago
As the current Auto Development Policy (ADP 2016-21) is
about to end in June this year, the government is preparing a new auto policy
that will focus on facilitating the manufacturing of low-cost cars and
incentivise auto exports.
According to multiple industry sources, roughly
45% of a car price that a buyer pays goes to the government in the form of
duties and taxes. The government charges duties on imported CKDs (completely