Peugeot 2008 launch in Pakistan

Ibn-e-Ameer

The government has given a one-time exemption for importing two units to carry out durability tests, paving way for the launch of Peugeot 2008 SUV Vehicles in Pakistan.

The French Car Marker had entered into a joint venture with Lucky Group to manufacture petrol and electrical Peugeot 2008 SUV vehicles in Pakistan.

The Commerce Division had recently informed that the Ministry of Foreign Affairs (MOFA) had approached the Ministry of Commerce with the request to issue necessary condonation/exemption in favor of the subject vehicle.

The release of these vehicles was pending customs clearance.

MOFA informed that M/S Peugeot, the largest automaker of France, had entered into a Joint Venture with Lucky Motors, for the manufacturing of Peugeot 2008 SUV vehicles in Pakistan.

There launch of Peugeot 2008 vehicles in Pakistan was on the cards and car markers wanted import of these vehicles for durability tests.

For durability test, M/S Peugeot exported 2 units of Peugeot 2008 (Allure 1.2T), one electric and one petrol, to Pakistan, on July 21, 2021.

However, Peugeot 2008 Allure 1.2T (Petrol), manufactured in June 2020 was denied release because it exceeded its statutorily permissible period of importation by over 20 days.

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This delay in shipment was due to global supply chain disruptions caused by Covid-19-related restrictions. Thus, the late departure of the vessel in July 2021, instead of June 2021, made the importation of the vehicle, manufactured in June 2020, prohibited.

Policy to Import Cars

As per para-2(m) of the Import Policy Order (IPO), 2020 allowed import of vehicle as brand new, if anyone imported within 12 months of manufacturing, and neither registered nor used for more than 500 kilometers before importation. As such, a vehicle that did not comply with this quoted provision of the IPO could not be treated as new, making it not-importable in terms that were banned for import in old/used conditions).

However, the government had powers to allow import or condonation of any conditions or prohibitions (bans).

Keeping this in view, and to give a signal that the government was honoring foreign investors, and protected in Pakistan, the commerce ministry sought approval for one-time condonation to release vehicles.

The Federal Board of Revenue had also supported the proposal.

During the discussion, the Minister for Law & Justice pointed out that despite directions of the Cabinet, the Ministries/Divisions had failed to carry out amendments in-laws/rules and policies to replace the word “Federal Government with other appropriate authority, as a result, even routine cases come for the approval of the Cabinet.

The Cabinet considered the summary titled ‘One-Time Release of Peugeot 2008 Allure 1.3t (Petrol) Vehicle Exported by M/S Peugeot, France for Durability Test’ and approved the proposal contained.

Peugeot 2008 price in Pakistan

According to reports, the ex-factor price of Peugeot 2008 2022 in Pakistan will be from Rs 5,250,000 for the base variant and at Rs 5,850,000 active for the top-of-the-line allure variant.

The price of cars has not been stable and continues to rise mainly due to rupee depreciation against rupee. The regulator is very weak and therefore, there is no control over the prices of cars in Pakistan.

The government of PTI had granted several tax incentives in the new auto policy 2021 to the car markers. They had pledged to cut prices. Rather they increased prices that embarrassed the government.