Regal Automobiles Industries Limited has announced plans to begin manufacturing electric vehicles in Pakistan next year, beginning with a small car that can go 180 kilometres on a single charge.
According to an official document made available for listing at the Pakistan Stock Exchange, Regal is the only automobile manufacturer in Pakistan to build DFSK electric vehicles under a plant machinery plus CKD [Completely Knocked Down] supply arrangement with DFSK Motor Co. Ltd.
Regal will build the electric vehicle assembly line as part of a strategic partnership with DFSK Motor Co. Ltd., under which the company has signed a Memorandum of Understanding for the import of plant and machinery for the electric vehicle assembly with ChongQing Sokon Motor (Group) Imp. & Exp. Co. Ltd., DFSK Motor Co. Ltd.’s exclusive supplier.
Regal, initiating a project for electric vehicles, will avail the following benefits from the year 2021 till the year 2026.
- 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.
The Government of Pakistan is dedicated to reducing emissions in order to reduce and adapt to the detrimental consequences of climate change, in line with worldwide progress in the electric vehicle arena. The government of Pakistan authorised the National Electric Vehicle Policy since transportation accounts for 43 percent of airborne emissions in Pakistan.