German truck maker MAN SE to set up assembly plant in Pakistan

Published: March 2, 2017
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Company also expected to export trucks from country, say industry officials. PHOTO: REUTERS

Company also expected to export trucks from country, say industry officials. PHOTO: REUTERS

KARACHI: German truck maker MAN SE is at an advanced stage of setting up a plant in Pakistan, industry officials say.

Forecasting greater demand of heavy vehicles under the China-Pakistan Economic Corridor (CPEC), vehicle manufacturers are flocking to Pakistan to explore opportunities of investment with MAN SE being the latest addition to the growing list.

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MAN SE, which has been watching the Pakistan market for over five years, is expected to officially announce its decision within a couple of months.

It is pertinent to mention that 75% of MAN SE’s ownership rests with the Volkswagen Truck and Bus GmbH, a wholly-owned subsidiary of Volkswagen AG.

Industry officials say this is a big development for Pakistan because the company is also expected to export trucks from the country.

The National Logistic Cell (NLC) is expected to give significant orders to MAN SE because Pakistan’s leading logistic company is looking to replace its old fleet, an auto industry official informed.

Officials from the German company are also coming to Pakistan to participate in the Pakistan Auto Show (PAPS) 2017, being held from March 3 at the Expo Centre, Karachi.

CPEC is expected to generate huge demand for trucks in Pakistan and industry officials say Pakistani companies like NLC would prefer to use German trucks due to quality concerns. Local industry officials say German trucks are better placed to commute on extraordinary high altitude of Karakoram Highway (KKH) – one of the highest paved roads in the world that connects Pakistan and China.

In February 2012, German Embassy’s Commercial Section Head Samy Saddi, while talking to media, said that German auto giant MAN was looking at Pakistan as a potential market.

The 250 year-old company operates through fully owned subsidiaries or joint ventures with local companies in India, Poland, Turkey, China, the US, the UAE South Africa, Uzbekistan, Portugal etc.

After years of stagnant economic activity and poor automobile sales, Pakistan is witnessing huge demand in heavy vehicles due to CPEC, macroeconomic stability and relative improvement in the country’s security situation.

Earlier, it was reported that Volkswagen Commercial Vehicles is in final talks with Premier Systems Private Limited – the authorised importer of Audi vehicles in the country – to set up a manufacturing/assembly plant for its Amarok and T6 (transporter range) models.

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In the past year, a number of international auto makers have expressed interest to set up manufacturing plants in Pakistan.

France’s Renault and South Korea’s Hyundai and Kia have announced they will soon start assemblies in Pakistan, in partnership with local companies.

This will mark a return for Kia and Hyundai, which left in the previous decade when their local partner suffered financial problems.

Published in The Express Tribune, March 2nd, 2017.

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Reader Comments (10)

  • Pakistani
    Mar 2, 2017 - 10:05AM

    Excellent newsRecommend

  • Vineeth
    Mar 2, 2017 - 11:47AM

    Exporting ‘assembled’ trucks when MAN trucks are ‘manufactured’ next door in India for a lower cost?Recommend

  • Tunio
    Mar 2, 2017 - 1:37PM

    @Vineeth:
    At the initial stage, how come you already are sure about lower cost in India? Maybe surplus of energy in coming years, cheaper labor, massive Tax incentives by the Government are a few things that makes it cost competitive, isn’t it?

    Plus, what exporting implies to you? Maybe Pakistan is in a better position to export to Central Asian states, Afghanistan, Iran and maybe even beyond.

    Get out of your bubble, its all coming and your irrational bluffs wont help! Recommend

  • Zahid Qadeer
    Mar 2, 2017 - 1:54PM

    Its not a bad idea to import parts from India on lower cost and assembled in Pakistan. Win-win situation for both countries.Recommend

  • Farru
    Mar 2, 2017 - 3:10PM

    @Vineeth:
    Good question. But due to fast rising demand of quality trucks and cheap labour, MAN can keep its production at a lower level in Pakistan.

    There must be some benefits otherwise why would this company even think of Pakistan when it is producing vehicles in both India and China. Recommend

  • LOL
    Mar 2, 2017 - 3:37PM

    @Vineeth: you think the company is stupid ? your PM is stupid who thought he would isolate Pakistan.Recommend

  • k
    Mar 2, 2017 - 4:07PM

    @Vineeth:
    that is the problem with Most of the Indians, do you even know that Automobiles made in india can not be imported in pakistan?? that is why many auto maker imports parts from india etc and assembled them in pakistan. Like Hino pak, Daewoo koreaRecommend

  • Ali Khan
    Mar 2, 2017 - 6:19PM

    More and more foreign companies should invest in Pakistan. Pakistan is open for business. Recommend

  • Aatika Imran
    Mar 2, 2017 - 9:34PM

    Good to see that Pakistan is flourishing.Recommend

  • Noman
    Mar 3, 2017 - 12:04PM

    Is thier any employment system for the locals… if the plant is in karachi ….Recommend

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