Auto sector raises alarm over NEV policy

Local auto manufacturers have raised concerns over the proposed new energy vehicle (NEV) policy, fearing it could pave the way for unrestricted imports of completely built units (CBUs) of vehicles at significantly lower duty and sales tax rates. They have further warned that this could lead to a loss of market share for local original equipment manufacturers (OEMs), negatively impact parts manufacturers and stifle growth of the auto industry. Members of the Pakistan Automotive Manufacturers Association (PAMA) have expressed concerns regarding the recently discussed NEV policy and the corresponding policy document. The government plans a subsidy of Rs50,000 for electric two-wheelers and Rs200,000 for three-wheelers.