New auto players to invest over $800m in Pakistan

Dewan will revive Shehzore production, others will set up assembly lines

ISLAMABAD: The government has given new projects of five vehicle manufacturing companies including Hyundai, Kia, Regal Automobiles, Khalid Mushtaq Motors and United Motors Greenfield investment status under the Automotive Development Policy 2016-21, which is expected to bring investments of over $800 million to Pakistan.

According to the Engineering Development Board (EDB), which works under the Ministry of Industries and Production, it is facilitating fresh investments in the auto sector from new companies including joint ventures with foreign players.

It is anticipated that with the revival of Dewan Farooque Motors, which has been given the go-ahead to manufacture vehicles under the new policy, Shehzore pick-up trucks will be re-launched shortly whereas Daehan Dewan Motor will manufacture Ssangyong Tivoli SUV with an investment of $145 million.



These are in addition to their quest for the launch of BMW in Pakistan. It has been learnt that the case of Ghandhara Nissan is also under consideration, which is planning to launch Datsun in Pakistan with an investment of around $41 million.

Since the announcement of the five-year auto policy in March 2016, auto giants from South Korea, Germany and France have been quickly drawn into the Pakistan market. Kia and Hyundai have already started working on their assembly plants while Volkswagen and Renault have announced plans to set up plants in the country.



Analysts say the industry will finally see tough competition when companies like Hyundai, Volkswagen, Kia and Renault will start production from 2019.

According to the EDB, it has already facilitated investments amounting to $531 million and the total will cross $800 million after more proposals.  

Published in The Express Tribune, January 7^th, 2018.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.