Car companies have reimbursed a payment amounting to Rs. 4 billion to the consumers for late deliveries of vehicles under the consumer protection clause of AIDEP 2021-26, CEO of Engineering Development Board (EDB) Raza Abbas Shah told the Minister of Industries and Production earlier today.
The newly appointed Federal Minister for Industries and Production Makhdoom Syed Murtaza Mahmud held a briefing session on the automobile industry earlier today. Federal Secretary Mr. Jawwad Rafique Malik, CEO of EDB, and other senior officers of the Ministry attended the meeting.
Recent Activity Overview
EDB CEO gave an overview of the automobile sector of Pakistan vis-a-vis two broad-spectrum policies including the Automobile Development Policy (ADP) 2016-21 and the recently launched Auto Industry Development and Export Policy (AIEDP) 2021-26.
He highlighted that the AIDEP focuses on the following:
- Value addition in the auto industry by 30 percent
- Bi-annual update of SRO 693
- Export targets for auto parts as well as locally manufactured cars
- Adoption of safety regulations through legislation
- Promoting Electric Vehicles (EVs) & new technologies in the auto industry.
CEO EDB stated that the later version of Automotive Development Policy (ADP) 2016-21 incentivized the entrance of 7 new automakers into the local market. He highlighted that Pakistan has achieved up to 92 percent localization in tractor production, 95 percent localization in motorbike production, and up to 55 percent localization in car production.
CEO EDB apprised the Minister that it has issued 8 licenses to EV-based Original Equipment Manufacturers for the production of 2-wheelers and 3-wheelers in Pakistan.
The Minister remarked that the new policy is crucial in ensuring growth & development of the automotive industry. He stated that there is a need to increase the footprint of EVs to mitigate the challenges of global warming.
He directed the EDB to address the ‘Own-Money’ issue so that consumers could get vehicles timely at justified prices.