Sources from the Engineering Development Board (EDB) have confirmed that the automotive industry has received unlimited incentives for electric vehicles (EVs) in the country. They claim that investors may abuse incentives and hurt the entire industry.
It came to light at a time when some EV investors were interested in the Pakistani market after the new government’s policy on EV.
Automotive Industry is Opposed to Government’s New Unlimited Electric Vehicle Policy
The EVs have generated many investors in Pakistan, but EDB has begun to resist the idea of unlimited incentives for such vehicles.
At a meeting of the Ministry of Industry and Production, EDB members said that providing unlimited incentives is not only risky, but also an unsustainable long-term model.
EDB all asked participants in the EV meeting to “formulate a policy framework for companies that strive to bring EV”.
Participants argued that since electric vehicles have the same parts as fuel engines, incentives should only be given to the battery and not to the entire vehicle. They claim that it could harm the car parts segment of the automotive industry.
A source close to the case revealed:
There was a concern shared in the meeting that this new category may become an avenue to import parts and vehicles at next to no tariff and turn the industry upside down.
Some members also argued that the definition of EV, semi-EV and hybrid vehicles should be well defined, without any doubt.
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