Auto Induustry
Essay Preview: Auto Induustry
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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%