Auto Induustry

Pursuant to the proposals sent to ECC for approval in December 2006, ECC in a meeting held on 1st February 2007 has approved the long term auto policy. As per the details, by the year 2011-2012 local car manufacturing is expected to reach 500,000 units per annum as against current production of 200,000 units. Total investment is the sector is expected to reach Rs. 225bn as compared to present Rs. 98bn thus would enhance the share of auto sector in GDP from present 2.8 percent to 5.6 percent. In light of the aforesaid targets, auto plan has now been approved which is explained in the table below.

AIDP Snapshot For the period of first five years Periods following thereafter

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

CKD Components- finalized

Localized parts 50.0% 50.0% 50.0% 47.5% 45.0% 45.0%

Non- localized parts 35.0% 35.0% 32.5% 32.5% 30.0% 30.0%

CKD Components- proposal sent to ECC in December 2006

Localized parts 50.0% 50.0% 50.0% 47.5% 47.5% 45.0%

Non- localized parts 35.0% 35.0% 32.5% 32.5% 30.0% 30.0%

CBU Units- finalized

Upto 1500cc 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%

1500 - 1800cc 65.0% 65.0% 65.0% 60.0% 60.0% 60.0%

1800cc and above 75.0% 75.0% 75.0% 70.0% 70.0% 70.0%

CBU Units- proposals sent to ECC in December 2006

Upto 1500cc 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%

1500 - 1800cc 65.0% 60.0% 55.0% 52.5% 50.0% 50.0%