Kia Lucky Motors Pakistan is expected to commence production from August this year. The company’s representatives met with the Prime Minister’s Advisor on Commerce, Textile, Industries and Production and Investment Razzak Dawood and apprised him of their production plans and some other related issues. The planned investment in the project is worth $ 190 million.
The manufacturing facilities of the firm are complete and the firm will start manufacturing by August 2019 of the following models: Kia Sportage, 2000 cc petrol and Kia Picanto, 1200 cc petrol.
According to sources the booking of Kia Picanto will start in August, 2019 and delivery will start in October, 2019 whereas Kia Sportage will start booking in June, 2019 and will be delivered in August 2019.
The matter however is not without controversy. M/s Kia Lucky Motors Pakistan had been awarded the Greenfield license under ADP 2016-21 which granted them concession of Federal Excise Duty (FED) @ 10 per cent levied on locally assembled vehicles having cylinder of 1800 cc or above. However despite opposition the government, in the final version of Finance Bill (second amendment), has imposed FED on locally manufactured vehicles of 1700 cc and above despite MoI&P’s recommendation to remove the FED.
Some rumors are also circulating that the Govt. is actively considering award of Greenfield status and similar concessions to an existing OEM which has committed to bring in new investment.
As ADP was not supposed to to give concessions to existing OEMs under the Greenfield or Brownfield categories, the companies feel like they were misled during the initial meetings with with BoI, MoI&P and EDB. Representatives of Kia Lucky motors state that if such intent had been communicated earlier, global OEMs like Kia and others would not have decided to enter Pakistan in the first place.
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