The Engineering Development Board (Tariff Section) in its 20th meeting of the auto industry development committee (AIDC) is going to discuss the case of M/s New Allied Motors as New Entrant for various vehicles.
It may be mentioned here that M/s New Allied Motors were granted New Entrant status for the assembly/ manufacturing of following vehicles under contract assembly agreement at Adam Motor Company facility vide AIDC approval in its 19th meeting held on February 19, 2014.
i. Subuk Raftar Shineray, Mini Van, 996cc
ii. Subuk Raftar Shineray, Mini Truck, 996cc
After lapse of five months, M/s New Allied Motors have not yet commenced production at Adam Motor Karachi facility. Now the firm has approached EDB for approval of their Lahore facility for the assembly/ manufacturing of following vehicles
i. Subuk Raftar Shineray Mini Van, 996cc Power Steering
ii. Subuk Raftar Shineray Mini Truck, 996cc Power Steering
iii. Guru Diesel Truck, 2200cc
EDB’s technical team conducted two visits of the facility at Lahore. After rectification of facilities as per requirement of EDB, the plant was found satisfactory for assembly operations. Meanwhile, EDB has asked the firm to clarify their position with regard to Karachi operations including shifting of machinery without approval of EDB.
M/s New Allied Motors responded EDB that M/s Adam Motor Company had changed the conditions of contract assembly agreement which is still under negotiation and has not been finalized yet. Therefore, assembly/ manufacturing at the facility were not possible. Whereas M/s Adam Motor Company informed EDB that M/s New Allied Motors had borrowed the welding jigs etc., and as soon as these jigs were received back along with CKD at our plant, assembly process can start immediately.
Therefore, the matter is being placed before the Committee for following consideration along with their Localization plans.
- Cancellation of AIDC approval for the assembly/ manufacturing process at M/s Adam Motor Company.
- Grant approval of assembly/ manufacturing at their Lahore plant for the assembly of following three vehicles under new entrant policy.
- Subuk Raftar Shineray Mini Van, 996cc Power Steering
- Subuk Raftar Shineray Mini Truck, 996cc Power Steering
- Guru Diesel Truck, 2200cc
-Published on page#20 August-2014 edition of MOBILE WORLD Magazine