New Auto Policy of Pakistan may produce better results

New Auto Policy of Pakistan may produce better results

Analysis Report: Syed Nizam-Ud-din Chishti

The first locally owned vehicles in Pakistan, the Vauxhall and the Bedford truck, were manufactured in 1953 by National Motors in Karachi.

And even today the auto industry in Pakistan is a fast-growing industry with a share of 4 per cent of GDP and this industry employs 1.8 million people.

At present, there are several car manufacturers operating in the country with a total investment of 92 billion rupees.

The country is currently producing 151,000 vehicles and more than 1.8 million motorcycles, earning the government 50 billion rupees.

In addition, the vendor industry is supplying one billion worth of world-class equipment locally to the auto sector.

New Auto Policy of Pakistan may produce better results

According to the Pakistan Automotive Manufacturers Association (PAMA), domestic sales between 2015 and 2019 were 2,16,786 units. In 2019-20, due to Corona, the sales have come down to 96,455 units, but last year in 2020-21, the sales have reached 1,51,182 units, including 20 per cent ​​in vehicle sales, 17 per cent in bus sales, 23 per cent in jeeps. Pick-up increased by 57 per cent, tractors by 55 per cent and motorcycle sales by 39 per cent.

Government of Pakistan set a target to locally produce 5,00,000 vehicles per annum

The present government has recently announced a new 5-year auto policy 2021-26 to end the monopoly of certain companies in the country and abolished the federal excise duty on 800 to 1000 cc vehicles, while those above 1000 cc. The federal excise duty on vehicles has been reduced by 50 per cent, which will reduce the purchase of 800 to 1000 cc models by 1,50,000 to 2,00,000 rupees. Price reduction advertisements are being published.

Federal Minister for Industries and Production – Pakistan Khusro Bakhtiar on Wednesday said the government has taken measures to promote the automobile industry by reducing prices of vehicles by up to Rs230,000 and boosting production to 500,000 units by 2025.

Federal Ministers Fawad Chaudhry and Khusro Bakhtiyar while addressing the press conference regarding New Auto Policy 2021-26 Islamabad.

In the next financial year, the present government has set a target of increasing the production of vehicles locally to 5,00,000 per annum under the new auto policy.

Sunil Sarfraz Manjh, CEO of Pak Wheels

Referring to the government’s new five-year auto policy, Zaheer Ali, an expert in the auto industry, said that those who buy 800 to 1,000 cc vehicles belong to the middle class and a reduction of 1,50,000 to 2,00,000 rupees is a big difference.

Sunil Sarfraz Manjh, CEO of Pak Wheels, believes that the new policy introduced by the government is aimed at promoting local vehicle manufacturing so that local vehicles can be exported.

A working woman, Farheen Iqbal, said that she is very satisfied with the new auto policy of the government. She said that now it has become easier for her to buy a car.

It is gratifying that the government has introduced an affordable “My Car Scheme” for the people under the “New Pakistan Housing Scheme” as well as affordable housing. So that the middle class can also benefit from their car scheme. It will also produce a positive impact on the country’s economy.

Leave a Reply

Your email address will not be published.