In recent news, Regal Automobiles Industries Limited has announced its plans to begin manufacturing electric vehicles in Pakistan which will be compact inside and can travel around 180 kilometers on a single charge.
According to an official draught, Regal is currently the only car manufacturer in Pakistan which is building DFSK electric vehicles under plant machinery. In addition, the company is currently in talks with numerous vendors about forming a CKD collaboration agreement which would result in the supply of parts for upcoming electric vehicles. However, it is to be noted that Regal is in a Memorandum of Understanding with ChongQing Sokon Motor (Group) Imp. & Exp. Co. Ltd., DFSK Motor Co. Ltd.’s exclusive supplier, will be building an electric car assembly line as part of a strategic partnership with DFSK.
In addition, the government aims to produce 100,000 cars in the next five years where three-wheeler production would increase to 500,000 within those very same 5 years. Once Regal continues its strategic partnership regarding the EV ecosystem, then the company would receive the following perks:
- The CBU import for all Electric Vehicles will be charged a 10% custom duty
- The imports of CKD for Electric Vehicle assembly will be charged 1% custom duty
- The import of plant and machinery for 4-wheeler Electric Vehicle assembly will be charged a 0% custom duty
- The Electric Vehicle charging equipment will be charged a 1% custom duty
- The retail price of an Electric Vehicle will be exempted from any FED and will only be charged a 1% sales tax
- The import of Completely Built Unit of Electric Vehicle is allowed at a rate of 0% sales tax
- The State Bank of Pakistan (SBP) has given a special window for EV car financing at the rate of 1% SBP rate plus 4% spread.
News source: TechX
