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.
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.
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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.
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.
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.