Japanese company Seek concessions for assembles hybrid vehicles
LAHORE: Two Japanese auto makers have demanded the government to offer concessions for the local level assembly of hybrid vehicles, as proposed in the proposed 5-year policy, for electric vehicles.
Honda Atlas Cars and Pak Suzuki Company, in their comments on the draft policy issued to the stakeholders of the Engineering Development Board (EDB), have urged the Ministry of Industry along with the board to keep the old industries of the sector similar.
The two companies have urged the government to encourage the local assembly for at least one year in view of the damage caused by the Corona virus, developed by ADB to bring electric vehicles and hybrid technology into the country. Delay the announcement of the policy.
"This will give us more time to make up our minds, the industry will need more time to get out of the current situation," an executive of Pak Suzuki Company told.
In a letter to EDB chief executive Reza Abbas Shah, both Honda and Suzuki said that full nose-down (CKD) hybrid vehicles should be set at 1 percent equivalent to custom duty electric vehicles (EVs).
The policy draft recommends 1% customs duty on import of EV-related CKDs and 10% on hybrid-related CKDs.
He withdrew 20% discount to new entrant companies like 'Hyundai' and 'Kaya' under the Auto Industry Development Policy (AIDP) 2016-2021, importing electric and hybrid vehicles for all industries. He also demanded to reduce the proposed 30% duty on the parts to 10%.
"Since both the EV and hybrid cars will require fresh investment in the plant and machinery of the local assembly, this draft policy should not discriminate between existing manufacturers and new companies," said a Honda Atlas Cars executive. ۔
In addition, the automakers proposed that the duty on the import of spare parts be reduced from 45% to 25% and doubled to 50% on fully constructed units (CBUs).
"This will be to help reduce costs and costs," he said.