EDB Allows Eight New Entrants To Set Up Vehicle Assembly Plants

Engineering Development Board has approved the applications of eight new entrants to set up vehicle assembly plants in Pakistan for passenger and commercial vehicles.

This was stated by an EDB official in a hearing held by the Competition Commission of Pakistan (CCP) to get the perspectives of all stakeholders on pertinent issues in the Automobile Sector in Pakistan.

The official stated that the entry of new players in the market would result in a considerable foreign direct investment in the country creating more jobs.

The EDB was providing full support to strengthen the engineering base in Pakistan by creating a level playing field for all manufacturers, he further said.


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CCP Chairperson Vadiyya Khalil said that the automobile sector plays a crucial role in generating economic activity in the country, providing employment to a large number of people, and contributing to the national kitty through taxes and other relevant duties and charges. However, she said the CCP continues to receive concerns and complaints regarding the pricing of locally made cars, safety features, technological issues, delivery of vehicles, payment of premiums, and progress on the localization of auto industry and deletion programs.

The open hearing, she said, has been organized to discuss those and other relevant issues so that CCP can take necessary measures under its mandate to help resolve these issues.

The consumers complained of long delays in the delivery of vehicles after bookings, premiums charged by dealers, increasing prices of cars, and lack of safety features in the locally made cars.


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The CEO of Indus Motor Company Ali Asghar Jamali said that his company had recently invested in increasing its manufacturing capacity to cope with the increasing demand. He said that the issue of premium was equally disturbing for his company and they will support all initiatives to curb the practice.

The representatives of used car importers suggested allowing the import of new cars on a commercial basis, as opposed to the current practice of transfer of residence and gift schemes so that people have more options of choosing cars.

An official of Excise and Taxation Islamabad said that his department will support any policy measure to curb the practice of charging premiums by dealers.

The official of FBR said that matters relating to import duties on vehicles have been decided by the Ministry of Commerce and not the FBR.

The official of Ministry of Commerce said that they were soliciting proposals from various stakeholders on the forthcoming budget including those in the automobile sector and asked the attendees to send their proposals to the Ministry.

The CCP’s bench, comprising the Chairperson Vadiyya Khalil, and Members Dr. Shehzad Ansar and Dr. Muhammad Saleem, conducted the open hearing that was attended by the representatives of Federal Board of Revenue, Ministry of Commerce, Engineering Development Board (EDB), Excise and Taxation, representatives of auto manufacturers including Indus Motor Company Limited, Pak Suzuki, Pakistan Automobiles Manufacturers Association (PAMA), Pakistan Automobile Assemblers Dealers Association (PAMADA), Pakistan Association Of Automotive Parts & Accessories Manufacturers (PAAPAM), online platforms, car importers, and consumers in large number.

  • Really delighted to read CCP hearing with chairperson Madam Vadiyya Khalil, member Dr. Shehzad Ansar & Dr. Mohammad Saleem with EDB. With the Road Safety, Vehicle Safety in local cars are important issues. Road Safety is very important aspect, to which gathering of data and statistics, of road accidents, injuries, death record is very important. There was very seldom any vehicle Recall in Pakistan for Vehicle Road Safety or Engineering flaw. The only thing that saves a vehicle automobile is “Digitalisation enhances Road Safety”. The EDB therefore should have a clear goal of greater safety on all roads as it is worldwide goal.
    Digitalisation all the way to connectivity & automated driving makes a huge contribution to this since 90% of accidents are caused by human error and only a small portion is related technical failures. Digitalisation that is connected and automated driving supports, assists and warns drivers of hazards. It is a mega trend and is therefore also an important driver of innovation. For the associated tasks the companies also need new qualifications for their staff andmore specialists in IT and software. Digitalisation will arrive faster than we expect.
    Legislators all over the world now have the task begining every where to create the regulatory foundation for the wide scale introduction of new technologies. This must be aligned with economic development & expansion wof the infrastructure. These technologies will thus gradually become established around the globe. And that is what is important, in particular to benefit human beings. Because we want to improve road safety everywhere we have to prepare the way for Digitalization worldwide. As you know Europe ploughs resources into digital Railways. There is no data statistics on Road Safety, Accidents, Injuries to enable auto manufacturer how to save lives. Besides the most important thing is to the CCP should consider/reccomend the respective authorities to make Bicycle Tracks in Karachi, enable Pedestrian Bridges where ever required, enable foot path for wheel chair track, and strature bed. Digitalisation is on massive scale adopted in railways, transportation as trucking, cars, on a massive scale. I seek an audience with further suggestion for possible reccomendation by respective regulatory authorities in Pakistan for Road Safety.

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