Auto policy approved, door wide open for new entrant

[Arsalan]

I can wait.

Let's see when new entrants actually enter the market. No rush.

Great!

 

[waz]

Stop the personal attacks guys and debate the topic.

 

[VCheng]

Stop the personal attacks guys and debate the topic.

The new Auto Policy has the basic problem of leaving the atrocious taxation structure substantially in place that distorts the market, and makes it almost impossible to justify the business case to set up manufacturing plants in Pakistan, given its local conditions.

 

[Icarus]

From your own source:

"It was not clear how much capital Hyundai, South Korea's largest automaker, would itself invest in the Pakistani venture."

"........the deal was "subject to applicable statutory and regulatory approvals"."

Has Hyundai itself said anything?

Pictures from the launch: https://defence.pk/pdf/threads/intercity-bus-terminals.477249/page-2#post-9497289

 

[VCheng]

Pictures from the launch: https://defence.pk/pdf/threads/intercity-bus-terminals.477249/page-2#post-9497289

Trucks and Buses are a different market altogether.

 

[v9s]

The new Auto Policy has the basic problem of leaving the atrocious taxation structure substantially in place that distorts the market, and makes it almost impossible to justify the business case to set up manufacturing plants in Pakistan, given its local conditions.

You're right. Which is why local players are putting up their own money to set up the plants.

Nishat-Hyundai venture for making Passenger cars - A reality. Nishat is putting up the money
Lucky-Kia venture for making Passenger cars - A reality. Lucky Group is putting up the money
Renault-Nissan-Ghandhara - A reality. Mix of foreign and local money

 

[VCheng]

You're right. Which is why local players are putting up their own money to set up the plants.

Nishat-Hyundai venture for making Passenger cars - A reality. Nishat is putting up the money
Lucky-Kia venture for making Passenger cars - A reality. Lucky Group is putting up the money
Renault-Nissan-Ghandhara - A reality. Mix of foreign and local money

Has Nishat's plan received the necessary regulatory approvals it mentions in the link above, given your admission that no foreign entity can justify a business plan due to the atrocious taxation structure?

 

[v9s]

Has Nishat's plan received the necessary regulatory approvals it mentions in the link above, given your admission that no foreign entity can justify a business plan due to the atrocious taxation structure?

They have applied for Greenfield approval for the assembly plant.

 

[VCheng]

They have applied for Greenfield approval for the assembly plant.

So something not even approved by the government yet is to considered a reality? Right. Got it. What is the likelihood that no foreign investors will risk their money, but some local groups will get generous loans locally to be written off later? Pretty high, I would suspect, given how these games are really played in Pakistan.

 

[Asian.Century]

Heard Mercedes now assembling trucks in Pakistan

 

[jupiter2007]

Joint venture with Romania, Brazil, China, Turkey, Iran, South Korea and Japan to boost local auto industry.