Pursuant to the proposals sent to ECC for approval in December 2006, ECC in a meeting held on 1st February 2007 has approved the long term auto policy. As per the details, by the year 2011-2012 local car manufacturing is expected to reach 500,000 units per annum as against current production of 200,000 units. Total investment is the sector is expected to reach Rs. 225bn as compared to present Rs. 98bn thus would enhance the share of auto sector in GDP from present 2.8 percent to 5.6 percent. In light of the aforesaid targets, auto plan has now been approved which is explained in the table below.
AIDP Snapshot For the period of first five years Periods following thereafter
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
CKD Components- finalized
Localized parts 50.0% 50.0% 50.0% 47.5% 45.0% 45.0%
Non- localized parts 35.0% 35.0% 32.5% 32.5% 30.0% 30.0%
CKD Components- proposal sent to ECC in December 2006
Localized parts 50.0% 50.0% 50.0% 47.5% 47.5% 45.0%
Non- localized parts 35.0% 35.0% 32.5% 32.5% 30.0% 30.0%
CBU Units- finalized
Upto 1500cc 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%
1500 - 1800cc 65.0% 65.0% 65.0% 60.0% 60.0% 60.0%
1800cc and above 75.0% 75.0% 75.0% 70.0% 70.0% 70.0%
CBU Units- proposals sent to ECC in December 2006
Upto 1500cc 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%
1500 - 1800cc 65.0% 60.0% 55.0% 52.5% 50.0% 50.0%
1800cc and above 75.0% 70.0% 65.0% 60.0% 50.0% 50.0%
Used Cars
Liberal auto import policy stance by the government in the recent years has helped the Government to bridge the demand supply gap. Where at one end, this has helped ...