Ghandhara Nissan Limited has joined hands with Nissan Motors Japan to start the production of auto parts in Pakistan.
This was announced by the company in a letter to Pakistan Stock Exchange informing that the company is going to collaborate with the Japanese automaker to localize the production of auto parts.
The letter explains that a team from Nissan Motors recently visited domestic suppliers to determine their quality and capacity. The team was here to determine if localized parts could be manufactured at par with the international standards upheld by the automotive company. Unfortunately, the letter adds that most of the suppliers failed to meet the standards and were advised to improve their quality.
The letter further added that Nissan Motors has proposed to partner with a local supplier, that is Ghandhara Motors, to improve the quality and the capacity of auto parts.
The local automobile company, in March this year, has received the Brownfield status under the auto policy 2016-2021. Subsequently, the company announced an investment of $41 million to resume its plant in Pakistan. It then announced to introduce Datsun Go in the market, and now, the company is going to start manufacturing the auto parts as well.
The Brownfield status also allows Ghandhara Nissan to import auto parts at reduced customs duty for three years.
Under the Brownfield status, Ghandhara Nissan gets the following incentives for three years:
- Allowed to import localized parts at 10pc custom duty for cars and LCVs
- Can import non-localized parts at 25pc custom duty for cars and LCVs
- May import all parts (localized and non-localised) at prevailing custom duty for HCVs.
The company has, however, not specified when the development will take place.