Chinese carmaker solves supply chain issues
During the meeting, the chairman emphasised the need for recovery of the arrears. PHOTO: file
Great Wall Motors (GWM) has announced that it will continue vehicle production in Pakistan as it has overcome shortage of auto parts and addressed supply chain issues.
GWM Vice President Shi Qingke said that at the beginning of current year, Pakistan encountered challenges in the automotive industry. Similarly, his company, like most of the other automotive companies, also faced car parts shortages.
However, “the problem has been considerably mitigated, and we have no issues with the supply chain.”
Last year in Lahore, Chinese carmaker GWM’s first factory officially commenced production in Pakistan with annual production capacity of 20,000 units.
On November 17, the GWM-assembled Haval H6 HEV made its official debut in Lahore. The event signified several ground-breaking achievements in the industry, with GWM rolling out the first locally assembled hybrid vehicle in Pakistan, surpassing even Japanese brands, Shi told the China Economic Net.
Moving forward, GWM has planned to introduce plug-in hybrids and fully electric models, bringing the latest energy technology to Pakistan and facilitating the country’s transition from traditional fuel-powered vehicles to new energy vehicles.
Since the implementation of China-Pakistan Economic Corridor (CPEC), Pakistan, with its immense market potential and economic vitality driven by a population of 220 million, has attracted the attention of numerous foreign investors.
With the continuous improvement of infrastructure, Chinese automotive companies have not only provided a wider range of products for Pakistani consumers but have also established assembly plants, ambitiously striving to become industry leaders despite the economic turbulences.
Pakistan has a vehicle ownership rate of less than 20 per 1,000 people. In contrast, China reached the rate of 230 vehicles per 1,000 people in 2022.
“This demonstrates that Pakistan holds unlimited market potential,” said the GWM vice president.
“Currently, we are overbooking,” Mian Muhammad Ali Hameed, COO of Sazgar Engineering Works Limited, GWM’s partner, remarked, adding that earlier Pakistan’s auto sector was dominated by Japanese vehicles.
To tackle the dominance of Japanese brands in the light vehicle sector, some local manufacturers have been seeking breakthroughs.
“The world is shifting towards new energy sources and I believe Pakistan will catch up. Our partner has a strong presence in the new energy sector, which is why we chose to collaborate and jointly explore the new energy market,” Hameed said.
Published in The Express Tribune, June 24th, 2023.
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