NA body recommends fairness of policy for electric-hybrid vehicles

ISLAMABAD: The National Assembly, Standing Committee on Industries and Production on Wednesday recommended that level playing field with regard to policy for electric vehicles and hybrid vehicles should be considered without any discrimination.

The Standing Committee on Industries and Production of the National Assembly was held, in the office of the Honda Atlas Cars (Pakistan) Ltd under the chairmanship of MNA, Sajid Hussain Turi.

The meeting took place at factory premises of Honda Atlas Cars (Pakistan) Limited.

The Committee recommended that government should review the taxes regime applied on imported parts and local vendors related to automobile sector.

The members were greeted by the company management and were briefed about the company business situation, efforts to increase the localization and maintaining the world quality standard in Honda cars being manufactured locally.

Following the business presentation, the members asked the different question regarding exports opportunity, high prices and company efforts to increase the local contents in the vehicle.

The management apprised the Committee members that since the local cost of production is very high, mainly due to exchange rate impact, rising raw material cost and inflationary impacts, therefore the exports were not viable from Pakistan.

While discussing the matter of higher prices, the Committee was informed that direct and indirect taxes account for more than 40% of the total cost of vehicles, therefore the industry have to increase the car prices to recover the cost impact.

On a question of localization of high-tech parts of engine transmission, it was informed the Committee members that since the total market volume was very low, and the market growth remain inconsistent, the manufacturing of high-tech engine parts was not viable.

In case the total market size increase more than 1mn units, then the vending industry may make the huge investment for localization of engine parts.

The management informed that the prices were increased due to higher tax rate structure and exchange rate fluctuation.

If the taxes are reduced, the car prices will be reduced accordingly.

In its business presentation, the company urged Government to reduce taxes – which will immediately lead to reduce car prices and increase production and sales volume.

The Committee members also appreciated the company’s contribution towards society with installation of clean drinking water pump in Manga Mandi, free medical camps and plantation of tree towards the government campaign of “Clean Green Pakistan”.

The Committee members also visited the plant and appreciated the investment made to manufacture in-house steel and plastics parts in its Press Shop and Plastic Injection Shop.

The Committee highly admired the role of Honda Atlas Cars (Pakistan) Limited management under the supervisor of Hironobu Yoshimura, Mr. Kenichi Matsuo and Mr. Maqsood Rahmani.

The Committee members included Muhammad Abdul Ghafar Wattoo, Syed Mobeen Ahmed, Muhammad Akram, Sahibzada Sibgatullah, Sajida Begum, Usama Qadri, Muhammad Pervaiz Malik, Riaz Ul Haq, Rana Muhammad Ishaq Khan, Abdul Rehman Khan Kanju, Syed Mustafa Mahmood, Shandana Gulzar Khan, the officers from Ministry of Industries and Production, EDB also attended the meeting.