Master Motors has been granted Greenfield status by the Ministry of Industries and Production (MIP) to set up automobile assembly plant in the country. So far eight companies have been awarded Greenfield status under the new Auto Policy 2016-21.
Master Motors have signed an exclusive agreement with Chongqing Changan Automobile Limited, which is a state-owned Chinese automaker considered among the Big4 automakers in China with an annual production of more than 3 million units a year. Changan operates joint ventures with world renowned automakers including Ford (Changan Ford), Groupe PSA (Changan PSA), Mazda (Changan Mazda) and Suzuki (Changan Suzuki).
Changan is considered as the second most popular domestic brand in China with a stunning range of vehicles including hatchbacks, sedans, SUVs, MPVs and commercial vans and pickups, which are successful within China as well as international markets.
The Ministry has clarified that IVECO vehicles will also be included only if Master Motors provides the requisite information well before signing the investment agreement and it qualifies the criteria of Greenfield category of Auto Policy 2016-21.
In addition, Additional Secretary In-Charge MIP, Mian Asad Haya-ud-din has handed over a dispute between Foton Motors and Master Motors as both entities have come forward saying both are manufacturing the same vehicle but only one is being provided tariff concessions.
Sources revealed that the MIP in its previous meeting had extended invitation to head of Military Vehicles Research and Development Establishment (MVDRE), Major General Moazzam Ali to overlook the case and proceedings and judge which company is assembling the actual product. The meeting was also attended by CEO of Master Motors Limited and Hamid Rasool, Nadeem Malik represented Foton Motors.
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Master Motors earlier voiced its concerns over the granting of Greenfield status to Foton JW Auto Park. Senior General Manager, Master Motors Jahanzeb Khan in a statement said that privileged status to Foton JW Auto Park provided it with a 30 percent advantage in cost of commercial vehicles which are already being assembled and sold in Pakistan by Master Motors.
Foton JW Auto Park Chief Operating Officer Hamid Rasul in his written statement said that the company attained the Greenfield status after a prolonged process of examination by the appropriate department. He added that every process had been carried out in a transparent way. He further stated that Master Motors had voiced objections to it being granted Greenfield status because they weren’t allowed to produce the said brand in Pakistan.