Recently, we have heard a news that around fourteen MoUs (Memorandum of Understandings) has been signed between Chinese companies and Rehmat Group of Companies to launch electric powered vehicles in Pakistan. This certainly is a big news for the Pakistan Automotive Industry, as many foreign automotive companies are investing in this industry to make Pakistan prosper. Rehmat Group has acquired 25 acres of land in Nooriabad for the construction of the electric complex.
Firstly, Chinese companies will be launching commercial electric buses to make a knock at the electric motor transport market of Pakistan. After that, the next stage will be to build a manufacturing plant in the country to launch electric vehicles and two-wheelers. Shaukat Qureshi CEO (Chief Operating Officer) of Rehmat Group said that all preparation has been firmed with the Chinese companies concerning with equipment, machinery and manufacturing plants. The company has also submitted an application in the Board of Investment and Ministry of Industries for the production of electric vehicles in Pakistan. After the application approval, the company will start introducing and producing electric powered vehicles in Pakistan.
For an introduction of electric vehicles, CBU units will be imported in a couple of months. The Chinese companies that have signed 14 MoUs (Memorandum of Understandings) with Rehmat Group include Base Ningbo Foreign Trade Co Ltd, Haohong Motors, Shanghai Shenlong Bus Co Ltd, Jiangzi Technical Vehicles Manufacturing Co Ltd, Luoyang Xinguang Lithium Science and Technology Co Ltd, Zhehang Shanqi Tianying Vehicle Industries, Shangdong Leiteng Electric Power Technology Co, Wuxi Shengbao Electric Vehicle Co Ltd and Yangzhou Daojue New Energy Development Co Ltd.
In the 2018-19 budget, the government of Pakistan has announced some incentives for the foreign automakers. 16% customs duty will be exempted from charging stations for electric vehicles. The customs duty was reduced from 50% to 25% on electric vehicles. On the electric vehicles kits, the customs duty is reduced from 50% to 10%.