FAW China is a Chinese state-owned automaker founded in 1953 with over 100,000 employees. It has a joint venture with AL-HAJ Group called AL-HAJ FAW Motors established in 2006 to distribute FAW vehicles in Pakistan. AL-HAJ FAW Motors has expanded from importing complete built-up trucks to establishing an assembly plant in 2010, creating over 1,500 jobs. The company focuses on high quality, reliable, economical trucks and has grown to become the second largest truck seller in Pakistan through expanding its dealership network and investing in customer service.

1. Presented by,
Shahnawaz Bhamani
Rameez Gohar
Suleiman Salim
Wajahat

2. FAW China Introduction
 Founded in 1953.
 Headquarter in Changchun, Jilin China.
 Commonly known as FAW (First Automotive Works).
 More than 60 years in automobile industry with
continuous innovation.
 Has more than 1 lakh employees
 Operating in 70 countries.

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 Core Focus on Heavy, Medium and Light Commercial
Trucks and Prime Movers.
 Dominant position in truck market.
 Also expands their automobile business in medium
and light commercial vehicles.
 Biggest supplier to Chinese Military.

 FAW has 28 owned subsidiaries in which 18 partially
owned and joint venture with other companies.

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 FAW - Volkswagen
 FAW - Toyota
 FAW - Mazda
 FAW - GM

5. AL-HAJ Group
 Established at Jamrud Khyber Agency in
District Peshawar, Khyber Pakhtunkhwa.
 Initially importing and exporting of Electronic
products, Clothes and Tyres.
 Later became main dealer of Hino Pak.
 Has maintained a good relation with China,
Afghanistan, UAE and throughout Pakistan.

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Involves in,
 Oil Exploration and Production.
 AL-HAJ Transport and Logistics.
 AL-HAJ Industrial Corporation.
 AL-HAJ FAW Motors.
 AL-HAJ Metallic Industry.

7. AL-HAJ FAW Motors
 Joint venture between AL-HAJ Group and
FAW China in October 2006.
 Technical Assistance and Distribution
agreement with FAW China.
 Introduced Heavy Commercial Truck in 2006.
 Core focus on good quality, reliability,
economical and well designed vehicles.

8. Pattern of Expansion
1. Passive to Active Expansion:
 Entered into commercial market in 2006
with importing Heavy Trucks from China
(CBUs).
 Rapidly gained reputation and 30% market
shares .
 Gradually increased product range to Light
Commercial vehicles and medium trucks.

9. Continue…
 Became second highest Trucks seller after
Hino Pak.

10. Pattern of Expansion
2. External to Internal Handling:
 Starts assembly plant under technical license
in 2010 near Bin Qasim Port with 1 billion
Rupees Investment.
 100% equity financing with long term plans.
 Importing Parts and assembled locally (SKD).
 Producing and selling more, Lowering the
cost.

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 Latest Machinery, Infrastructure and
equipments.
 Are able to produce Heavy trucks, Prime
movers, Light Commercial and Passenger
vehicles.
 Will produce 11000 units per annum.

12. Pattern of Expansion
3. Deepening mode of commitment:
 Huge commitment comes along for providing safety products and
environmental friendly.
 One of the biggest 3s (sale, service and spare parts) facility under one roof in
automobile industry.
 Also provide special training and knowledge of vehicle's part.
 Created more than 1500 job opportunities.
 Good news for local dealers and raw material producers.
 EFI and Euro 4 technology.
 Auto financing Loan agreement with Bank Alfalah.
 Green supply Chain Strategy award for being environmental friendly in
Pakistan.

13. Pattern of Expansion
4. Geographical Diversification:
 Initially started from Karachi (Low Load shedding area) for
assembly plant.
 Captured best dealers all over Pakistan.
 Spreads whole networks in other main cities of Pakistan
includes Sadiqabad, Bahawalpur, Multan, Sahiwal,
Faisalabad, Lahore, Sargodha, Gujranwala, Rawalpindi,
Islamabad, Peshawar and Mirpur with their best 3s service.
 Helped in gaining reputation and market share, hence
diversified the risk.
 Also looking to target another cities as well.

14. Pattern of Expansion
5. Leapfrogging of Expansion:
 Quality features in engine.
 Innovative design.
 Luxury cabin.
 Air bags.
 Euro 2 and Euro 4 technology.
 Environmental friendly has its core value in Chinese vehicles.
 Boost and encourage local producer to produce quality materials.

15. Hard time
 Political instability.
 Economic Policies.
 Sales tax 25%.
 Negative brand image.

16. Conclusion