Manufacturing licenses of ‘Big Three’ auto companies suspended

Honda, Toyota and Suzuki were violating auto policy, says EDB

ISLAMABAD: An attached department of the Ministry of Industries and Production, Engineering Development Board (EDB) has suspended the manufacturing licenses of three automobile companies.

Sources inside the ministry reported that the car manufacturers have reportedly violated a number of conditions of the auto policy due to which their licenses have been suspended. These manufacturers are the biggest automobile manufacturers of Pakistan namely, Pak Suzuki Motor Company, Honda Atlas Cars Pakistan, and Indus Motor Company Limited (Toyota).

The manufacturers are not fulfilling localization conditions as they have not increased local production of vehicles under the auto policy.

According to the auto policy, automakers are bound to produce auto as well as spare parts locally. Moreover, car manufacturers are bound to export two percent of vehicles in 2023, 4 percent in 2024, 7 percent in 2025 and 10 percent by 2026,.

Not only are these manufacturers not producing spare parts, they have also not fulfilled the 2% export requirement.

Sources said that there may be some relaxation if car manufacturers provide written assurances of auto policy enforcement.

A senior official of EDB on the condition of anonymity said that the EDB cannot suspend the current licenses for long. Companies have already applied for the renewal of their licenses and the process will be completed in two to three days upon provision of written assurances. 

Shahzad Paracha
Shahzad Paracha
The writer is a member of Pakistan Today's Islamabad bureau. He can be reached at [email protected]


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