Pakistan Automobile Industry

[Indus Pakistan]

Does Pakistan even have a 'automobile industry'? I think more like car mafia that smuggle cars into Pakistan to evade import taxes under the guise of 'industry'.

 

[ghazi52]

Changan Motors finalizes a deal with Master Motors

Karachi, June 29, 2018: Chinese automotive brand Changan Automobiles and Master Motors have entered into a joint venture with the biggest Chinese investment in the local auto industry of US$100 million to contribute to the indigenization of the automobile industry of Pakistan.

Assistant President of Changan Automobile and General Manager of Overseas Business Development Department, Wang Huanran and Chairman Master Motors Limited, Nadeem Malik signed the agreement to pool the resources and expertise to achieve the common goal of becoming Pakistan’s leading automobile company by 2025.


“We are excited to see the market potential not only in Pakistan but also the export opportunities we can tap. Changan has selected Pakistan as the base country for the right-hand drive vehicles (RHD) to export to RHD countries, said Wang Huanran while talking to the media after the ceremony.

He said that Changan is the largest selling Chinese brand in China for ten years in a row touching annual volume of 2,870,000 units with wide range of world-class products in LCV, SUV, MPV, and Passenger car segments through joint ventures in China with manufacturers like Suzuki, Ford, Mazda, Bosch, Aisin, and Scheffler.

Changan is producing world-class products with an emphasis on safety and Research and Development. It has been ranked for No.1 R&D capability for continuous 10 years with nine R&D centres in China, Italy, Japan, UK, and the USA.

 

[ghazi52]

DFSK rolls out first k07 van at Pakistan plant

 

[ghazi52]

New RENAULT truck
Ghandhara Plant

 

[ghazi52]

Pakistan-assembled Hyundai cars to roll out in March 2020

On the consumer side, experts believe competition drives down prices. However, with a near 22% plunge in the rupee and dependence on imports, it is long before Pakistan’s auto sector can see lower prices.

Pakistan is set to see locally-assembled Hyundai cars roll out in March 2020, said an official privy to the development, as South Asia’s second largest economy braces for greater variety of vehicles on its expanding roads.

Hyundai, which is setting up a plant in Faisalabad spread across 66 acres, is partnering with local conglomerate Nishat Group to venture into Pakistan’s increasing but Japanese-dominated auto sector. The South Korean carmaker has shared its operational plan with the Faisalabad Industrial Estate Development and Management Company (FIEDMC), the body overseeing the special economic zone on which the plant is located, and is expected to roll out locally-assembled vehicles by the end of the first quarter of 2020.

“The company plans to produce 7,000 units in its first year,” Aamir Saleemi, COO at FIEDMC, told The Express Tribune.

After having long been dominated by Japanese brands, Pakistan has seen a number of vehicle makers express interest in setting up assembly/manufacturing plants. French carmaker Renault and South Korea’s Kia are two others currently in the same boat. The trigger came after the PML-N government approved a five-year auto policy that offered various incentives to new players eager to take advantage of a 207-million population and increasing economic growth that hit a 13-year high in 2017-18. “The Japanese-dominated industry is set to see a transformation. Hyundai cars will roll out in March 2020,” said Saleem, thrilled at the advent of industrialisation in Pakistan. The work to set up showrooms across Pakistan has already started, Saleemi said, adding that teams have been surveying various locations.

The company will aim to expand its production capacity to 22,000 within three years, he added.

Nishat Group, one of the biggest conglomerates in Pakistan, has ventured in to the auto sector after proving its mettle in the banking, textile and cement space with names like MCB Bank and DG Khan Cement. Its textile company, Nishat Mills, announced a three-month profit of Rs1.1 billion in January-March. The group entered into a joint venture agreement with Hyundai Motor Company and is setting up the plant in the greenfield investment category. Saleemi said the company will bring new technology that would focus on fuel-efficient cars, aiming to break the stronghold of the Japanese brands. “This will create healthy competition, provide jobs and bring much-needed investment in other relevant sectors.

“The incentives and concessions offered under the auto policy have created a favourable environment.” Hyundai has already invested $150 million, and this comes as a welcome sign for Pakistan that struggles to attract foreign direct investment (FDI). The amount stood at a paltry $2.76 billion in FY18, less than 1% of GDP.

The company’s history
Hyundai operated in Pakistan during the Musharraf era. However, stiff competition and an open-import policy along with financial problems faced by its local partners forced it to exit the market. A shrinking auto sector and energy shortage subsequently also caused the closure of many other industries in Pakistan, putting the country on a path of economic crisis that forced authorities to turn to the International Monetary Fund (IMF) several times. Saleemi said thousands have lost their jobs, but there is hope so as long as Pakistan continues to attract new players. “This kind of industrialisation in Faisalabad will change the map of the city. It will require many hotels, restaurants, clubs to be built to facilitate customers and international buyers. “The revival has come on the back of good policies that promote investment.”

On the consumer side, experts believe competition drives down prices. However, with a near 22% plunge in the rupee and dependence on imports, it is long before Pakistan’s auto sector can see lower prices. But what greater capacity would do is reduce the waiting time for car delivery, getting rid of the menace of ‘premiums’ in the dealership market. Pakistan’s car penetration of 13 vehicles per 1,000 persons is significantly lower than the regional average of 162, signifying strong potential for automobile growth due to growing disposable income and healthy growth in the country.

 

[ghazi52]

Changan Automobile rolls into Pakistan

Changan Automobile and Master Motor recently signed a joint venture frame agreement to import and assemble LCVs, SUVs, MPVs and Passenger vehicles in Pakistan. A number of Master Motor representatives attended the signing ceremony including Chairman Master Changan Motors, Mr. Nadeem Malik and CEO Master Changan Motors,
Mr. Danial Malik. Changan was represented by Overseas Department Chairman Mr. Wang Huanran and Pakistan Project Director Mr. Yao Chongyan.

 

[ghazi52]

PakWheels confirms that Toyota Indus Motor Company is launching the Toyota Rush in Pakistan in a few months.

It is a 1500CC mini-SUV, that the company previously released as the Daihatsu Terios in 2010 but later discontinued it. And now the IMC will initially sell completely built units (CBU) into the country.

Toyota Rush was first introduced to the Japanese domestic market in 1997 after which it gained traction in several developing marketing in Asia, Africa, South America and Eastern Europe.

In other markets, the car is known as the Daihatsu Bego, Grand or the Perodua Nautica. The 2018 model of the 7-seater Toyota Rush offered in other markets features very Fortuner-esqe styling with a more compact footprint. At this point it is not clear what trim options will be available to consumers in Pakistan, but the offering will likely be targeted to a young urban audience much like the other mini-SUVs that have entered the market recently.

The Toyota Rush will position itself in the market as a direct competitor to the Honda Vezel/ HR-V and the Suzuki Vitara. The price tags for vehicles offered by local automakers in this category is between Rs. 3.5 million and Rs. 4.2 million, so we are assuming that the company will offer it around the same price tag.

Over the past few years, the country’s long-stagnant auto sector has seen the much-anticipated activity as car sales exhibited great growth year-on-year, while new automakers race to set up assembly lines to capture a slice of Pakistan’s massive demand for automobiles.

Note: The Toyota Rush/ Daihatsu Terios is not to be confused with the Daihatsu Terios Kid, a 660CC Japanese domestic market Micro-SUV that gained popularity in the country in the late 2000s.

Pakwheels.com

 

[ghazi52]

Motorcycle production up 15.44pc in FY 2017-18

https://nation.com.pk/NewsSource/app

ISLAMABAD: The production of motorcycles during the first eleven months of fiscal year (2017-18) increased by 15.44 per cent as against the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported.

As many as 2,650,233 motorcycles were manufactured during July-May (2017-18) against the output of 2,295,846 during July-May (2016-17), showing growth of 15.44 per cent, the latest PBS production data revealed.

The production of cars and jeeps witnessed 20.10 per cent increase during the period under review as 214,904 jeeps and cars were manufactured during July-May (2017-18) against the production of 178,944 units during July-May (2016-17).

The production of light commercial vehicles (LCVs) witnessed an increase of 18.54 per cent in production during the period under review by growing from 22,927 units last year to 27,178 million during 2017-18.

The production of tractors also increased from 50,049 units last year to 67,371 units, showing growth of 34.61 per cent while the production of trucks increased by 20.27 per cent, from 7,104 units to 8,544 units.

However, the production of buses during the period under review witnessed the negative growth of 31.54 per cent by going down from the output of 1,043 units to 714 units.

Meanwhile, on the year-on-year basis, the production of motorcycles increased by 14.57 per cent by growing from the output of 231,295 units in May 2017 to 264,984 units in May 2018.

The production of tractors also witnessed an upward growth of 19.56 per cent by growing from 5,746 units in May 2017 to 6,870 units in May 2018.

The production of jeeps and cars increased by 0.74 per cent as the country manufactured 18,227 jeeps and cars during May 2018 against the production of 18,094 units in May 2017, the PBS data revealed.

The production of tractors also witnessed an upward growth of 19.56 per cent by growing from 5,746 units in May 2017 to 6,870 units in May 2018.

The production of LCVs witnessed decrease of 12.96 per cent in production by going down from the output of 2,368 units in May 2017 to 2,061 units in May 2018.

The output of trucks witnessed the negative growth of 7.02 per cent by going down from the output of 869 units in May 2017 to 808 units in May 2018 while the output of buses declined by 19.51 per cent by declining from 82 units to 66 units.

It is pertinent to mention here that the overall 'Large Scale Manufacturing Industries' (LSMI) of the country witnessed the growth of 6 per cent during the first eleven months of the current fiscal year compared to the corresponding period of last year.

The country’s LSMI Quantum Index Numbers (QIM) was recorded at 149.19 points during July-May (2017-18) against 140.75 points during July-May (2016-17), showing growth of 6 per cent.

The highest growth of 3.62 per cent was witnessed in the indices monitored by Ministry of Industries, followed by 1.58 per cent growth in the products monitored by Provincial Bureaus of Statistics (PBOS) and 0.80 growth in the indices of Oil Companies Advisory Committee (OCAC).

On yearly basis, the industrial growth increased by 2.76 per cent during May 2018 as compared to same month of last year, however, on month-to-month basis, the industrial growth decreased by 11.63 per cent in May 2018 when compared to growth of April 2018, the PBS data revealed.

 

[ghazi52]

Dewan Motors / Daehan Motors automobile plants back in operations..

 

[jupiter2007]

Still 10 years behind our neighbors.
Auto industry need 10+ billions investment in few years to put it in the right track.

 

[VCheng]

So will the New Auto Policy announced by the previous government be continued? When are the new models hitting the streets?

 

[ghazi52]

Faisal Movers Launching Soon from Swat.

Swat to Lahore, Rawalpindi and Peshawar. Business, Executive, Coaster and Hi-Roof service.

 

[Rocky rock]

Dewan Motors / Daehan Motors automobile plants back in operations..

@ghazi52 most of your pictures didn't even open what's the reason behind it.?

 

[airmarshal]

Pakistan size of market does not allow big volumes of production. Government must change policy to make auto industry export oriented like Thailand and Morocco. Only then will Pakistan get the big investments.

Auto industry is the backbone of engineering industry and can rapidly create jobs across the country as the supply chain is massive and big volume.

 

[STRANGER BIRD]

CBU units of Toyota Rush reached Karachi Port. Toyota plans to launch Toyota Rush in Pakistan