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EV Policy to Become Part of the New Automative Industry and Export Plan 2021-26

Ministry of Industries and Production has conveyed to the auto industry that the new Electric Vehicle Policy will become part of the new Automotive Industry Development and Export Plan (AIDEP 2021-26).

This has been stated by the Chairman Engineering Development Board (EDB) during the last meeting of the Auto Industry Development Committee (AIDC) held at the Board of Investment. On the advice of Minister for Industries and Production, Secretary AIDC requested Chairman EDB to chair the meeting and to read the policy statement of the Government of Pakistan for new Automotive Industry Development and Export Plan (AIDEP) (2021-26).

The policy statement highlighted focus on smaller vehicle segment, enhancement of localization, innovation in tractor industry and in particular reduction of prices, exports and employment generation. It further clarified that Electric Vehicle Policy will become part of the new policy. The policy statement stressed that locally manufactured vehicles will match international quality benchmarks by adoption of UNECE’s WP-29 regulations.

The new policy shall be focused to enhance exports, reduce smuggling/under invoicing, Research and Development, vehicle manufacturing with an emphasis on customer satisfaction.

Secretary AIDC informed that, EDB started formulation of electric vehicle (EV) policy in line with Government of Pakistan vision of ‘Clean Green Pakistan”. EDB focused on “Make in Pakistan’ strategy for local manufacturing amid a shift from fossil fuels to environment friendly electric vehicles. In this regard a high level inter-ministerial committee finalized the recommendations of the EV Policy for 2-3 wheelers and Heavy Commercial Vehicles, which have been approved by the Cabinet and implemented.

The recommendations which were approved and not implemented and policy/recommendations for 4 wheelers have also now been approved by the Cabinet and will be implemented shortly.

He appraised the house on approved policy.
Muhammad Faisal, COO, Lucky Motors Corporation Ltd (LMCL) said that there should be a maximum cap of 25% to CKD Kits to avoid chance of misuse. Chairman, EDB clarified that valuation cannot be part of the Ordinance however it can be made part of implementation mechanism. He further said that 25 percent is a random number therefore he requested M/s LMCL to provide detailed working that justifies that number.

The Chair added that EVs range from less than Rs. 1 million to over 10 million; every price range can have different percentage valuation. However, he stressed developing appropriate valuation mechanism to determine the pricing instead of a random percentage.

Muhammad Ashfaq, Joint Secretary, Ministry of Commerce said that forum of National Tariff Policy should be updated about new policies i.e. AIDEP, EV policy and Tariff related issues.

Secretary AIDC proposed that this matter requires a lengthy deliberation. Therefore, EDB will convene separate meeting with National Tariff Commission (NTC)/Ministry of Commerce at the earliest to discuss the EV policy matters. The house agreed to his proposal.

It was decided that implementation mechanism of EV Policy will be finalized by EDB in consultation with public and private stakeholders.

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