The federal government has suspended the temporary licenses granted to car manufacturers following the expiration of relief measures provided on an interim basis for failing to localize vehicle components and spare parts, well-informed sources said.
Sources said that three major companies shared business plans with the Ministry of Industries and Production in an attempt to address this issue. Sources added the ministry has not made any decision on the business plans, leaving the fate of the manufacturers in limbo.
The actions leading to the suspension of these licenses were prompted by the failure of car manufacturers to fulfill conditions related to export and the localization of vehicles.
The Ministry of Industries and Production had requested business plans from the companies, emphasizing the need for compliance with industry regulations. Car companies have fallen short of meeting the condition requiring a 2 percent export rate.
Sources within the Ministry revealed that automobile companies have not witnessed an increase in the production of vehicles at the local level. Car companies have fallen short of meeting the condition requiring a 2 percent export rate.
To promote local industries, automakers are obligated to locally source vehicle components and spare parts. The current situation highlights the challenges faced by the automotive sector in adhering to these regulations and underscores the need for swift and effective measures to address the issues at hand.
