The government has decided to incorporate the Electric Vehicle (EV) Policy into the forthcoming new Auto Policy 2021-26.
The current Automobile Development Policy (ADP) 2016-21 that came into effect from July 2016 will expire in June 2021. The Ministry of Industries and Production would now incorporate its EV Policy in the ADP 2021-26, for which consultations with stakeholders were already underway. This was informed by the officials of Engineering Development Board (EDB) during a meeting of the National Assembly’s Standing Committee on Industries and Production on Tuesday.
Industries & Production Minister Hammad Azhar briefed the committee about the electric vehicle policy in connection with ADP 2016-21. The minister informed that 20 new investors have been granted ‘Greenfield status’, while the government also tried to create competition by granting functioning licenses to 6 new entrants. Hammad Azhar said:
“In addition to new entrants in four-wheel vehicles category, 4 new companies entered Pakistan in the bus market too. A total of around $476 million has been invested on ground by the new entrants.”
The minister labeled the current auto policy 2016-21 as success & added that the incumbent policy would help strengthen the automotive sector as it would increase the overall installed capacity of local industries to up to 418,000 per annum by June 2021, which was around 280,000 in June 2020.
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He further went on to inform that policies for 2- and 3-wheelers as well as heavy commercial vehicles have already been approved by the cabinet and implemented. The policy for hybrid vehicles however, would be covered in the ADP 2021-26 and a policy regarding local manufacturing for electric vehicles would also be incorporated in it.
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