Pakistan’s vehicle collaboration with China to be converted into local manufacturing of vital parts

The vehicle collaboration with China which has a great impact on Pakistani Automotive industry in a very short span of time has proved fruitful. It was started with CBU and CKDs but sooner it may be converted into local manufacturing of various vital parts with the transfer of technology from Chinese counterparts and with the development of infrastructure under CPEC.

The above views were expressed by Mr. Nasir Mahmood, Managing Editor, MOBILE WORLD Magazine, who has made great efforts in the promotion of Pak-China vehicle collaboration for a long time. The magazine was launched in 1999 when there were only six motorcycle manufacturers and three (all Japanese) car assemblers in the country.

The biggest progress in cooperation with Chinese occurred soon after the signing of CPEC and new Auto Policy was introduced by the previous regime in the country. “It opened the doors for recent foreign investment in Automotive Sector of Pakistan and the largest contributors’ credit goes to the Chinese Government and its companies. They are quite successful in Sales, Service & Spares Network having vast vendors support,” Mr. Nasir explained.

It is learned that a large number of Chinese brands has established nationwide in Pakistan. Plum Qingqi Motor is a pioneer in the 3-wheeler industry. Al-Haj Group entered into an agreement with a leading Chinese automobile company named First Automobile Works (FAW) in 2007 for manufacturing and assembling heavy vehicles in Pakistan. These local assembled vehicles were introduced and successfully ran on the roads.

China-made passenger vehicles created a better market in Pakistan. According to Mr. Nasir, the 1.5 L Crossover segments successful brands are MG & DFSK Glory. “DFSK has already introduced its Commercial & Passenger vehicles in 2018 Pickups & Van. Forland Commercial was introduced by JW Group in Pakistan and now JW is the local partner of MG Crossover vehicles whose over 8000 CBU vehicles are sold in Pakistan…”

Maintaining that Pakistan has a huge potential and big prospect for development of all sorts of vehicle industry, Mr. Nasir highlighted that Pakistan has an energetic workforce and efficient vendor industry as well. “With induction of the next five years’ Auto Policy for 2021-26 there would be more facilitation in this field. However, the future of electric vehicles demands strenuous efforts by the government and private sectors. It requires cheap and vast resources of electricity, local and low cost manufacturing of vehicle batteries, and country-wide infrastructure of charging stations like that in China. In the absence of these all people are more attracted to Hybrid vehicles.”

Source: China Economic Net

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