Government awards Greenfield status to two new automakers....
Auto Development Policy 2016-21 has proved fruitful for the local auto industry as many new automakers have entered the country to avail incentives provided by the government under this auto policy.
Till now more than 10 automakers have entered or preparing to enter local automobile industry including Kia, Hyundai, Renault etc and have been awarded Greenfield and Brownfield statuses by the authorities and now the government has awarded category-A Greenfield status to two new automakers namely Topsun Motors and Pak-China Motors.
The companies will set up their assembly and manufacturing in the country to produce quality vehicles.
With this approval, the auto companies who have received Greenfield status are now 10 in total. Topsun Motors, as of now, is operating in Punjab, Pakistan, however, it is committed to expanding its services across Pakistan. Moreover, Pak-China Motors has the same registered address as the Karakoram motors– the one who brought Chery QQ in Pakistan.
The Greenfield status has been granted to these companies under the condition that these companies will follow all the rules and regulations set by the government under auto policy 2016-21.
The other companies which have been given Greenfield status are as follow:
Regal Automobile Industries Limited
Kia-Lucky Motors
Hyundai-Nishat
United Autos
Khalid Mushtaq Motors
Foton JW Auto Park, owned by JW SEZ (formerly Ruba SEZ)
Sazgar Engineering Works
Master Motors
Greenfield Investment is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of a make not already being assembled/manufactured in Pakistan.
Duty-free import of plant and machinery for setting up the assembly and manufacturing facility on a one-time basis;
Import of 100 vehicles of the same variant in CBU form; at 50 percent of the prevailing duty for test marketing after groundbreaking of the project;
Concessional rate of customs duty @ 10 percent on non- localized parts and @ 25 percent on localized parts for five years for the manufacturing of Cars and LCVs;
Import of all parts (both localized and non-localised) at prevailing customs duty applicable to non-localised parts for manufacturing of trucks, buses and prime movers for three years, and
The existing policy for Motorcycle industry as approved by the government and notified by FBR vide SRO 939(I)/2013 and SRO 940(I)/2013 shall continue.
