It is recently reported that the Board of Investment (BOI) has turned down the investment plan of the German auto manufacturer, Audi. Reports indicate that the government has refused to make any change in the Auto Policy 2016, which has been devised to attract new players in the auto industry to improve competition and vehicle quality.
BOI Spokesman, Shah Jahan Shah while speaking to a group of journalists on Tuesday said ‘Audi representatives visited Pakistan and wanted to invest in MKD (medium knocked down) model with only vehicle assembly in Pakistan. It is against the current auto policy.’
‘Although we encourage new entrants, our primary goal is to ensure the growth and strength of Pakistan’s vendor base and dealer network, besides creating employment’ Shah added.
The rationale behind the new Auto Policy 2016 is to improve the emission and fuel consumption standards while discouraging the booking of cars against full payments with extended delivery dates.
“Pakistan has already been criticised for an inconsistent policy, therefore, the government is not in a mood to amend the policy under any pressure to accommodate some auto players,” Shah Jahan explained.
His remarks come at a time when Pak Suzuki Motor has already hinted that the company is reviewing to scrap its investment plan worth approximately $460 million, if the government did not pay heed to its request for incentives. Shah pointed out that new players like Renault, Ghandhara Nissan, Nishat Group, Kia and Hyundai had contacted the BOI and applied for incentives.
Reports indicate that Audi’s representatives have been asked to come up with a new proposal while considering key points that are mentioned in the new Auto Policy 2016. In any case, we’ll keep a track on the upcoming trends of the company to keep our readers updated.