Chinese companies interested in setting up car plants

Representatives of about 500 firms highlight business interest during ICCI trip

Our Correspondent December 24, 2017
A car manufacturering plant. PHOTO: REUTERS

ISLAMABAD: A delegation of Chinese manufacturers and assemblers of automobiles including heavy-duty trucks, engines, auto parts and tyres have expressed interest in setting up vehicle manufacturing plants in Pakistan.

The delegation, comprising representatives of about 500 auto companies, expressed the desire for investment during a visit to the Islamabad Chamber of Commerce and Industry (ICCI).

Some of the companies that sent their representatives were Jinan Zhongzhan International Trade, Jinan Bonaite Trading Company, Hebei Xinjiu Heavy Duty Machinery Makes Company, Sinotruck and Shanghai Cheezmail E-Commerce Company.

Auto sector set to make big gains from CPEC

Delegation members insisted that they were producing vehicles in line with European Union standards and were keen to explore business opportunities for vehicle, engine and auto part manufacturing in Pakistan.

Initially, they would look for local partners for the supply of automobiles and auto parts and following its success, they would try to set up auto manufacturing plants and bonded warehouses through joint ventures and investments.

Representatives of the Chinese companies said they also wanted to share technical know-how and expertise with Pakistani manpower. They also agreed to organise a seminar at the ICCI to spread awareness among local businesses of their products and prospects of business collaboration.

Speaking on the occasion, ICCI President Sheikh Amir Waheed told Chinese entrepreneurs that heavy-duty trucks and vehicles had a huge scope in Pakistan as road transportation supplied over 90% of the goods via land.

He said many industrial zones would be established under the China-Pakistan Economic Corridor (CPEC) due to which demand for heavy-duty trucks and loading vehicles would gain pace.

He called it the right time for Chinese automobile investors to set up vehicle and auto part manufacturing plants in Pakistan through joint ventures.

Waheed pointed out that the middle class was rising in Pakistan, suggesting Chinese investors should also focus on meeting its needs by producing cars of less than 1,000cc engine capacity.

He underlined the need for developing strong business linkages between auto companies of Pakistan and China as they had a great potential for growth.

China to build automobile city in Gwadar

ICCI Senior Vice President Muhammad Naveed and Vice President Nisar Mirza assured the Chinese investors that the Islamabad Chamber would facilitate them in connecting with right partners in Pakistan.

Published in The Express Tribune, December 24th, 2017.

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