European Car Makers Slow Down Investment in Pakistani Auto Market

While many Asian auto-manufacturers are rolling out their vehicles, European automakers seem uninterested in investing in the Pakistani market.

A few months ago, announcements of Volkswagen AG Germany and Renault France coming to Pakistan spurred quite an excitement in the automobile market. However, none of these European companies have made any noticeable progress to date.

“Renault has acquired land in Faisalabad but there has been no progress to establish an assembly plant, while Volkswagen still has to get the possession of land in Karachi as stated by their local partner,” said a Ministry of Industries and Production (MoIP) official.

The Auto Policy 2016-21 provides two categories for entrants. The first category is ‘greenfield investments’ that involves installing new automotive assembly and manufacturing facilities. Whereas, the second category is ‘brownfield investment’, which is meant to revive a prevailing assembly or manufacturing plant that was non-operational by July 1, 2013.


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Automakers in Pakistan

For now, Gandhara Nissan is about to roll out ‘Nissan Crossover’ worldwide in 2020 and will also launch the vehicle for its local assembly line during the same year. Nissan’s Datsun Go is also expected to be launched in Pakistan by the end of 2019.

Daehan Dewan Motor Company is also working on the revival of its small commercial truck ‘Shehzore’ and one SUV vehicle with SsangYong Motor Company (SYMC) of Korea. SYMC has submitted an ambitious plan to the Ministry of Industries and Production stating their SUVs will enter the market in 2019. However, it seems unlikely, as there are certain technical hitches with Shehzore.

Nevertheless, United Motors, Pakistan’s second largest bike manufacturer, has introduced its first car in Pakistan under the greenfield investment. Likewise, Regal Automobile Industries has set up the assembly plant in Lahore in collaboration with DSFK Motors of China to launch small commercial trucks.

KIA Lucky Motors has also rolled out Grand Carnival and K2700 pickup trucks while their SUV will make an entry in July this year.

Other companies that have made progress on introducing their vehicles in the country include Master Motors (joint venture with Chinese automaker Changan), Chinese auto company Foton JW Auto Park, Hyundai Nishat Motors, Khalid Mushtaq Motors, and Sazgar Engineering Works.

The number of companies investing under category A has increased to 14. However, Pak China Motors, Renault, Khalid & Khali Holding, and Topsun Motors & Engineering Services have not made any significant progress.

  • Ssangyong is owned by Mahindra, so technically it’s Indian and Our money would eventually end up in Indian hands which is not anyone in this nation would want.

    • Pffttttt.
      By this logic, we should not be buying Rolls Royce, Jaguar and Land Rover because their owners/shareholders are Indians.

      • Yeah like most people care for owning one off these money wasting pits. There are much better and cheaper options to go for instead.

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