KARACHI: Ghandhara Nissan Limited (GHNL) has signed a joint venture agreement with JAC Motors for the import, assembly, and distribution of X200 light trucks in Pakistan.
The company informed the Pakistan Stock Exchange (PSX) through a notice on Friday in which it attached its already published advertisements in newspapers.
JAC Motors is a Chinese automaker with over 50 years of experience in manufacturing various kinds of vehicles. It claims to be in the top 10 players in the Chinese auto industry.
GHNL’s stock price hit the upper limit after the announcement; the stock opened at Rs262.10 and ended the day at Rs274.59 for an increase of Rs12.49. The share did well on a day when the KSE-100 Index was down 0.78%.
X200 light trucks are a dual rear-wheel variant with a 2.8L engine, available in Euro I, II, III and IV specifications. Its 2.0L variant has a Euro V engine. This will compete with Dewan Farooq’s popular Shehzore 1-ton single rear-wheel truck and Shehzore 1-ton dual rear-wheel truck.
Last year, Dewan Farooque Motors Limited (DFML) announced to resume the production of 2.6L Shehzore after entering into a toll manufacturing agreement with Daehan-Dewan Motor Company Private Limited, which is a joint venture between Dewan Yousuf Companies and the Kolao Group based in Laos and South Korea.
DFML also intends to introduce 1.5-ton Shehzore truck and a 1,600cc engine capacity sport utility vehicle (SUV) in collaboration with Ssangyong China in 2017. It also plans to launch passenger cars, light commercial vehicles and SUVs in collaboration with Kia Motors, Korea over the next three years.
Meanwhile, GHNL has a technical assistance agreement with Nissan Motor Co, Japan and Joint Venture Agreement with Nissan Diesel Co, Japan for the progressive assembly of passenger cars, light commercial vehicles and heavy duty vehicles. The company’s car and truck plants are located at Port Qasim, Karachi.
After years of stagnant economic activity and poor automobile sales, Pakistan is witnessing huge demand in heavy vehicles due to the China-Pakistan Economic Corridor (CPEC), macroeconomic stability and relative improvement in the country’s security situation.
Auto industry officials say the demand of cars and other vehicles is expected to grow in coming years due to which a number of international auto makers have expressed interest in establishing their manufacturing plants in Pakistan.
France’s Renault and South Korea’s Hyundai and Kia have also announced to 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.