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China to Invest in Pakistan’s Automobile Sector

The CPEC project aside, Chinese businessmen are expected to make a massive investment in the Pakistani auto-sector where the vehicle’s quality and price will boost the competitiveness in the market.

China-Pakistan Automobile Partnership

New investors who have decided to invest in Pakistan include Regal Automobile Indus Ltd., United Auto Industries Ltd and privately TM Habib Rafiq (Pvt) Ltd, in collaboration with various other Chinese companies.

Government sources say that the Regal Automobile Indus Ltd has decided to invest in the auto-sector in collaboration with the company PDF S Motors and United Auto Industries. Similarly, Habib Rafiq (Pvt) Ltd has decided to invest with Jean Van Dong Dong motor cycles and vehicles in cooperation with another company.

Also Read: Is The Rs 250,000 Chinese Mehran Coming to Pakistan?

Under the Ministry of Industries and Production Engineering and Development Company, local companies have decided to invest in this sector with the help of the already-keen Chinese companies.

Additional Information

According to the government, in the first phase, 700 to 1,000 cars will be made for the army’s use. They will be sold later on, on a commercial basis to the general public.

Reports also claimed that National Logistics Cell (NCL) has decided to help companies like MAN Truck & Bus AG, Volkswagen owned sub-branch, distribute their vehicles in Pakistan. Implying that truck and buses auto-plants will be established in Pakistan.

The process of putting the plant together is expected to be completed in 2 to 3 years.

Concluding Thoughts

Pakistan is currently going through a transition phase in the automobile sector, with the approval of the latest Auto Policy. According to the policy, new investors can set up their production plants in Pakistan and import thing from abroad for less than half the normal price as an added perk.

The aim has been to break the monopoly of Toyota, Suzuki and Honda in the market, which looks to be happening. Companies like Renault and Volkswagen have already shown interest and asked for proposals.

  • Please forward our concerns to the Govt. to reduce / control the prices of new companies….as the existing one are making profit more then double, for their 3rd grade vehicles :-/

  • This is plus sign for automobile market and will be in favour of peoples of pak when new player will come but propakistan please don’t write an artical that auto sector in deal trouble like you write before for telco.

  • I will first request the government before signing this agreement. I live in Islamabad, the distance between my office and home is about 8 kilometers. When i leave office for home that takes more than one hour just to arrive home due to heavy traffic on roads. There are number of u-turns, heavy traffic that always remain jam at signals, besides that, i have to clear myself through many police check posts. Wherever go there is only mess on roads, no traffic rules are followed, no traffic police is seen except on few signals. i want to say the vehicles are already huge that are creating havoc mess and roads are not so many that more vehicles may be brought on the roads. On the other hand government is going to sign an agreement to make new cars in the country on cheap rate for middle class people. Before making such agreements first government should train the police and spacious roads may be made. We are nowadays unable to walk in Rawalpindi when such cheap cars will come in such cities who will control them. I will request government public transport may be encouraged and on all roots the public transport mode be started. Because we are already facing environmental issues like pollution and smog. So taking such steps smog and pollution will increase.

    • The solution of your problem is to adopt Berlin style because the area of both cities are almost same. Citizens of Berlin are comfortable to use environmental friendly cycles & bikes to avoid traffic load in their small city. Unfortunately we Pakistanis are status conscious so we must have to buy more expensive cars for such a short distance….just to show our status.

  • We welcome all new manufacturer to eliminate the monopoly of existing dragon in the market.

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