Audi is a famous Luxury Car Brand based in Germany, You Must have seen imported Audi Cars around you, Pakistani consumers are fond of Audi Brand, every car lover cannot leave Audi out if they ought to make a list of their favorite brands.
Board Of Investment has rejected the new player’s investment plan in Pakistani market and asked Audi to review the proposal.
According to Tribune, “Audi officials visited Pakistan and showed their interest to invest only in MKD (Medium Knocked Down) an assembly plant which only assembles auto parts, this is against the Auto Policy, 2016 BOI spokesperson Shah Jahan Said.
He further added “We want Audi to further strengthen the vendor base and the dealer network, besides creating employment.”
BOI also rejected Suzuki Motors $460 million investment plan on a condition to offer incentives.
Suzuki Motors, Dewan Motors, Faw China also applied for incentives which are under consideration.
The Auto Policy, 2016 has a special focus on accommodating new players with incentives if they have greater risks in the market and have large investment plans, old players will not be given incentives as it will create oligopolistic environment, in the market.
“The policy reflects consumer welfare, quality improvement and enhancement in safety standards. It will promote fair competition among auto players,” Shah said. “Auto players should introduce new models in Pakistan market at reasonable prices.”
It depends on the next proposal of Audi how they can come up with the investment plan which satisfies the BOI concerns and build healthy competition in the market.