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Federal Govt Suspends Car Manufacturers’ Licenses

Federal Govt Suspends Car Manufacturers' Licenses

The temporary licenses granted to car manufacturers by the federal government have been suspended after the expiration of relief measures provided on an interim basis.

This suspension stems from the failure of car manufacturers to meet conditions related to the localization of vehicle components and spare parts, according to well-informed sources.

In response to this development, three major companies submitted their business plans to the Ministry of Industries and Production in an effort to address the localization issue.

However, sources indicate that the ministry has not yet made a decision on these business plans, leaving the fate of the manufacturers uncertain.

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The decision to suspend these licenses was prompted by the car manufacturers’ inability 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 importance of compliance with industry regulations, particularly the requirement for a 2 percent export rate.

Sources within the Ministry disclosed that the automobile companies have not seen an increase in the production of vehicles at the local level.

This situation underscores the challenges faced by the automotive sector in adhering to regulations that promote the local sourcing of vehicle components and spare parts. It emphasizes the need for prompt and effective measures to address these issues within the industry.