News Analysis |
Ghandhara Nissan Limited (GHNL) announced that it has signed an importer’s agreement with France’s Renault Trucks SAS, a local publication reported. It said it has subsequently imported a few units to conduct a trial of the vehicle in Pakistan, a move meant to test the market and the product’s demand.
According to a notification sent to the Pakistan Stock Exchange, Ghandhara Nissan has imported Completely Built Units (CBUs) in order to see viability in Pakistan. Renault Trucks SAS, which operates as a subsidiary of AB Volvo, manufactures and distributes commercial vehicles and tools.
Kia, Hyundai, Renault, Volkswagen, United Motors and Sazgar have announced their intention to set up assembly plants in the country, while existing players have promised to ramp up production capacities.
Earlier this month, Ghandhara Nissan also launched locally-assembled one-ton pickup, JAC Motors X200, which is mainly used for the distribution of goods. It was previously imported in built-up condition from China but now Ghandhara Nissan has started producing it locally.
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In February, GVS reported that Ghandhara Nissan was likely to get government permission for resuming production of cars in Pakistan as the Board of Investment (BOI) and the Engineering Development Board (EDB) have agreed to treat the company’s plan as a Brownfield investment.
“The automaker is all set to receive the green light from the government to resume production of its cars. The Board of Investment and the Engineering Development Board are reportedly going to give the go-ahead soon to the automaker.”
Ghandhara Nissan was incorporated on August 8th, 1981 in Pakistan as a private limited company and was later converted into a public limited company on May 24th, 1992. It started vehicle production in December 1996, but after about 14 years production came to a halt. Its car assembly plant has remained inactive since 2010.
It was expected that the company’s plan was to be treated as a Brownfield investment. Under the Brownfield category, Ghandhara Nissan will be allowed to import auto parts at lower rates of customs duty for a period of three years. Nissan Gandhara will be able to import auto parts that are not produced locally at a lower 10% customs duty and those that are manufactured in the country at 25% duty for the manufacturing of cars and LCV’s (Light Commercial Vehicles) i.e. loaders and semi-trucks.
It said it has subsequently imported a few units to conduct a trial of the vehicle in Pakistan, a move meant to test the market and the product’s demand.
JAC Motors is one of the leading companies of China, which manufactures light commercial vehicles. Production capacity at Ghandhara Nissan for X200 pickup is 5,000 units per annum on a single shift basis.
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Ghandhara Nissan has also recently announced its renewed collaboration with Japanese Nissan Motor Company to assemble Datsun cars by next year. Its capacity is expected at 30,000 units.
Pakistan’s auto industry has seen several developments ever since the government announced the auto policy in March 2016. Kia, Hyundai, Renault, Volkswagen, United Motors and Sazgar have announced their intention to set up assembly plants in the country, while existing players have promised to ramp up production capacities.
Dewan Farooque Motors Limited (DFML) is gearing up to resume vehicle production from February 2018 as it has received approval for its Brownfield plant from the Engineering Development Board (EDB), according to a stock exchange notice the company sent on 19th January 2018, GVS earlier reported.