Nissan Reconsidering Sustainability of Its Car Project in Pakistan

Ghandhara Nissan Limited released its latest progress report about its Brownfield project on Friday.

Due to the local economic conditions, particularly the automobile market situation, they have been compelled to revisit the project’s sustainability. Ghandhara Nissan also mentioned that one cannot afford to go for a project of this magnitude with such a level of uncertainty in the country.

The company is very much concerned that they have a very limited time-frame to complete all the necessary requirements and start commercial production before 30th June 2021 to avail the brownfield incentives for the new entrants.

The government had awarded the ‘Brownfield Investment Status’ for the revival of the company’s existing assembly to produce Datsun cars in Pakistan.

”Nevertheless, the teams of Nissan Motor Company Limited and Ghandhara Nissan have been working day and night to address the above issues and hopefully will be able to address these challenges to launch our products within time as both the partners do not want to miss this opportunity of incentives for new entrants,” said the company.

The report further stated that due to a substantial devaluation of Pakistani rupee against US dollar, the localization of parts has become mandatory to make the project viable. However, the technical evaluation study depicted that localization of some parts is either not possible or will take significant time and resources due to lack of technology and expertise in the local market.

Therefore, Nissan Motor Company Limited has been exploring options to get these parts developed at a minimum cost by global vendors so that they can be imported as part of CKD.

Under the Brownfield category, Ghandhara Nissan was allowed to import auto parts at lower rates of customs duty for a period of three years.

According to the company, they will be the biggest sufferer if they cannot meet the target dates as GNL has been working on this project since long utilizing all the resources including monetary investment as well as manpower.

In addition to the progress on the car project, the company is keen for capacity building with existing operations to ensure long-term sustainability while addressing the challenging macro-economic environment.

The truck makers posted a loss of Rs. 28.80 million for the period that ended on June 30th, 2019. The company had booked a profit of Rs. 1.03 billion last year.

  • Goodbye Nissan. I will make sure no other companies comes into Pakistan. I will only be a hype master. For all the hypes that I have created, I have made millions of fans. I hope to rule for 20 more years and build ‘Naya Pakistan’.

  • what the fcuk is IK doing??? RIP
    making speeches and whatever while the economy is being shredded to pieces.

  • Commercial production of three Datsun models will begin in the second half of 2020.

    1,200cc Datsun Cross in July 2020 and then roll out the 1,200cc Datsun Go hatchback and Datsun Go Plus seven seater in the next two to three months.

  • Imran Khan ne Pakistan ka wo haal kar deya hai k her company ko
    aagaye khaye peechay kuwaan hi nazar aaraha hai!

  • Lanat ho is govt ke economic policies oe ab hatchback bhi 20 lakh ke ho gae hai. Mehngai asman pe pohnch gae hai. Shame IK.

      • to aap chala lo govt. pehle to kabhi govt aae nahi jaise. Gareb insan ka jena mushkil kr dya hai si mehngai ne. khane pene ke basic chezen intni mehngi Allah bachae is govt se. Aata, sugar, oil everything prices too much increase. govt so rahi hai ya sirf speech kr rahi hai.

  • to be honest…the car taxes are fare at this point…there was a big inflow of cars in last 5 years and due to that there is always traffic on road of big cities…Pakistani people should buy less cars.
    Even if Nissan launch new cars they will be just as costly as KIA cars and no one or only rich will buy them. Nissan is better off staying away from our car industry run by monopoly of big three companies.We can wait until economy is better.

    • Its because of Lack of Public transport, The Govt. just interested in collection of Taxes, nothing much, They are not interested to develop or restructure the Ruins of the Cities.

  • This is nothing more than an attempt to get an extension on brownfield status. They are late in getting their cars out of production line and are trying to get extension on tax exemption.

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