Local Assembled MG HS Completes All-Terrain Testing

The local assembled MG HS crossover has successfully completed its all-terrain testing in Pakistan. Javed Afridi, the key figure behind MG cars in the country has recently informed in his tweet along with some pictures of the local assembled MG HS 2.0T which was tested from Karachi all the way up to Khunjerab Pass.

Related: Will MG3 Still Cost Under PKR 2.0 Million?

Javed Afridi had earlier said that the locally assembled MG HS will hit the market within this year, as the crossover which became quite popular in the market was so far available as CBU import only. However, after the increase of Regulatory Duty (RD) and Federal Excise Duty (FED) on CBU units imposed earlier this year, took the price of the imported MG HS to PKR 89.0 lac. However with local assembled units arriving, the prices are likely to come down significantly.

Related: New Tax on Cars with Prices over Rs 5.0 Million

According to the information shared earlier, the MG plant can produce 100 vehicles in a day with an estimated monthly production rate of 3,000 units. Javed Afridi also hinted the introduction of three new MG cars in Pakistan within this year. Among which, the MG3 is a hatchback, MG5 also known as MG GT is a sporty sedan whereas the Gloster is a 7-seat SUV comparable to the likes of Kia Sorento. The beginning of local production was the need of the hour and with arrival of more models in the lineup, MG can better position itself to face the competition arriving in the market.

Local assembled MG HS 2.0T

However with recent economic challenges, government has taken stern measures to control the outflow of previous foreign reserves. This, in addition to a complete ban on CBU imports, now require assemblers to get prior approval from SBP (State Bank of Pakistan), for the import of a number of goods including CKD kits. The circular also demands letter of credit, registration/ amendment contract, advance payment, and authorizing transactions on an open account or collection basis. According to Abdul Waheed Khan, the DG of Pakistan Automotive Manufacturers Association:

“These restrictions are hurting original equipment manufacturers (OEMs) and auto parts makers. We need relief from the government and policymakers but instead we are being crippled through various kinds of measures.” 

MG was already too late to kick start the local assembly process, however the above restrictions might also pose the same sort of troubles which other assemblers are already facing. Whether MG will be able to swiftly initiate its assembly operations on a mass level, and whether it can launch more models in these tough economic times with question mark over the import of CKDs, we will have to wait to find out.

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