Pakistan’s auto sector have witnessed a rapid progress ever since the new Automotive Development Policy 2016-21 was announced. The policy was formulated to attract foreign automakers to invest in the country and to generate healthy competition in the sector.
So far more than 12 automakers have announced to collaborate with different companies in Pakistan, under the Greenfield as well as Brownfield investment categories. These automobile companies have collectively made an investment of more than $800 million in our country. According to the available information, investments under the Greenfield status are:
- Al-Futtaim Group, a large conglomerate of the United Arab Emirates, in collaboration with French automaker Renault is injecting $230 million in Pakistan’s automobile sector.
- Kia Lucky Motors Pakistan Ltd, in collaboration with Kia Motors of South Korea, has invested $190 million and will introduce high quality passenger and commercial vehicles in the country.
- Hyundai Nishat Motors (Pvt) Limited in a joint venture with Hyundai Motors are in process of establishing an assembly plant to manufacturer commercial and passenger vehicles including sedans and SUVs with an investment of $163million.
- Master Motors Ltd in a joint venture with Chongging Changan Automobile, Changan International Cooperation and IVECO will invest $101.52 million.
- The makers of 4-stroke CNG auto rickshaw, Sagzar Engineering Works Ltd, in partnership with BAIC Motors of China will make an investment of $31.01 million.
- Pak China Motors, formerly known as Karakoram Motors in partnership with Chongging Lifan Automobile will invest $24.25 million.
- United Motors (Pvt) Limited in partnership with Luoyang Dahe New Energy Vehicle and Yangste Motor Group have invested $19.05 million to assemble 800cc passenger cars and 1000cc pickups.
- Foton JW Auto Park (Pvt) Ltd in collaboration with Changsha Foton Vehicle Technology will invest $11.45 million to manufacture LCVs and heavy commercial vehicles.
- Regal Automobile Industries in collaboration with DFSK Motor have invested $10.71 million to assemble light commercial vehicles (LCV) and sports utility vehicles (SUV) to be sold under Prince brand name.
- Topsun Motors and Engineering Services in collaboration with Chongging Big S and T Dev Group as well as Mianyang Huarui Automotive will invest $5.43 million in Pakistan’s automobile sector.
- Khalid Mushtaq Motors (Pvt) Ltd in a joint venture with Changan Kuayua Automobiles has invested $3.50 million to assemble LCVs. These vehicles will be sold under Mushtaq brand name.
In addition, investments by two companies under Brownfield status, that is basically the revival of defunct units, include:
- Dewan Farooq Motors, who are in partnership with Ssangyong of South Korea, and Kolao Group of Laos will invest $145 million.
- Ghandhara Nissan in a joint venture with Nissan Motors of Japan will invest $41.3 million to manufacturer LCVs, SUVs and Datsun branded passenger cars.
The industry within the next couple of years is going to witness some tough competition in automobile sector when companies like Hyundai, Kia, Renault and Changan will start local production. Stay tuned to CarSpiritPK for all the latest updates on new vehicles in Pakistan.