Federal Secretary Ministry of Industries held meeting with the representatives of Auto mobile companies
Islamabad: Aziz Ahmad Bilour, Federal Secretary Ministry of Industries held meeting with the representatives of Pak Suzuki, Indus Motor Company (IMC), Landi Renzo (LR), Tesla, BRC about difficult situation being faced by OEMs and the CNG kit manufacturers after the imposition of ban on the import and installation of CNG kits on 15th December 2011.
Pak Suzuki informed that their company is badly affected by the decision and sales have plummeted. Similar, sentiments were expressed by Indus Motor Company regarding substantial drop in sales of Toyota and Daihatsu brands. It was informed that the saving of natural gas due to the imposition of ban is very insignificant as this will only save 0.26% of total gas production annually.
The delegation informed that a collective investment of Rs. 14.5 billion has been made by CNG kit manufacturers and OEMs which is under threat after the imposition of the ban. It was informed that another company Ms. Inflex entered into joint venture agreement with PoF Wah for manufacturing of CNG cylinders but due the ban it has become difficult for them to progress further with manufacturing in Pakistan.
Prior to the ban, LR and Tesla were exporting 70,000 CNG kits bringing $7 million of precious foreign exchange to the country. Secretary Industries assured the parties regarding taking up the issues involved to appropriate forum for proper consideration. He appreciated the performance by the companies and expressed the hope that they will focus on fuel efficiency in their upcoming vehicles.
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