ISLAMABAD: The manufacturing licences of three auto companies have been suspended in Pakistan over failure to achieve the export targets, citing sources, ARY News reported on Wednesday.
The Ministry of Industries and Production suspended manufacturing licences of three car and auto part makers over different genres of violations.
Sources told ARY News that the said car manufacturers allegedly violated Pakistan’s auto policy and failed to achieve the export targets. The action was taken over the failure to meet conditions for localisation of the auto manufacturing by the auto companies.
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The auto firms did not increase the local production of the cars, whereas, they also failed to meet 2% export targets, said sources, adding that the car makers are bound to produce vehicles and spare parts locally.
Sources within the ministry said that the government will not extend the licences of the companies.
The development came at a time when three major auto manufacturers in Pakistan announced a temporary shutdown of production plants due to an ongoing shortage of essential raw materials this month.
Earlier in the month, Pakistan entered the global car market and exported the first batch of 14 modern SUV vehicles to Kenya and Tanzania.
Pakistan joined the car export club earlier this month as a Pakistan-Chinese automotive joint venture Master Changan Motors became the first auto company to export SUV vehicles to foreign countries.
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It emerged that the auto firm dispatched the first batch of 14 SUV vehicles to Kenya and Tanzania.
A prestigious ceremony was held in Karachi to achieve the milestone of becoming the first Pakistani-Chinese auto company that export vehicles to two foreign countries. The ceremony was attended by Federal Secretary Industries and Production Asad Rehman.
The Pakistan-Chinese automotive joint venture Master Changan Motors dispatched the first shipment of its SUV Oshan X7 to Kenya.
It was a pleasant development for Pakistan entering the global car market amid the severe economic crisis.
