Automotive industry development in Pakistan

UPCOMING/NEW CAR
MANUFACTURER IN PAKISTAN

Muhammad Ali Shahid
Supply Chain Executive
©
KIA-Lucky Motors Pakistan Ltd.
 Name: KIA-lucky Motors Pakistan Ltd.
 OEM: KIA
 Local Group: Lucky Group
 Website: https://www.kia.com/pk
 Plant Location: National Industrial Park in Bin Qasim, Karachi
 Investment: USD 190 million
 Start of Production: 4th Quarter of 2019
 Remarks: KIA-Lucky Motors Plant to be manufactured in Karachi will tentatively start
producing cars locally during the fiscal year 2019-20. KIA has confirmed that they will start
import CBU from 2018.
 Production details: Kia Lucky motor is going to launch KIA RIO (CBU) and KIA Sportage
(CBU), SUV in the next few months. According Kia lucky, We want to start our localization at
the start of the production which is the preferred mode, but even if it gets delayed for some
reason, it won’t hold us back in terms introducing ourselves to the market. They will start
selling the CBU units before local production. The new venture will also market and sell,
besides import and export of all types of Kia vehicles, parts and accessories.

Muhammad Ali Shahid
©
KIA-Lucky Motors Pakistan Ltd.
KIA RIO - 1000 CC KIA Picato - 1000 CC
KIA Carnival - 2200 CCKIA Sportage - 1600 CC

Muhammad Ali Shahid
©
HYUNDAI NISHAT Motors Pakistan Ltd.
 Name: HYUNDAI NISHAT Motors Pakistan Ltd.
 OEM: Hyundai
 Local Group: Nishat Group
 Website: http://www.hyundai-nishat.com
 Plant Location: M3 Industrial City, Faisalabad
 Start of Production: 1st Quarter of 2020
 Remarks: Hyundai Nishat Ground Breaking Ceremony held in Dec '17 at Faisalabad M3
Industrial City. Local production expected to begin in first quarter of 2020.
 Production details: December 2019 would be rolling out the first model from CKD.
Imported models are not a mainstay stream for us. We are establishing the distribution
network side by side so when production comes online by end 2019, our distribution
channel should also be ready.. Hyundai is going to launch CKD, H100 pickup, Tuscon
Crossover, Kona Crossover, Elantra Sedan 2020. While CBU models include, H1 Van, and
Ionic Hybrid.

Muhammad Ali Shahid
©
HYUNDAI NISHAT Motors Pakistan Ltd.
Creta – 1600 cc
Elantra – 1400 cc
i10 – 1000 cc
Sante FE – 3300 cc
Tucson – 2000 cc
Verna – 1600 cc

Muhammad Ali Shahid
©
AL - FUTTAIM RENAULT
 Name: Al - Futtaim Renault
 OEM: Renault
 Group: Al-Futtaim Group
 Website: https://www.al-futtaim.com ,
https://group.renault.com/en/
 Plant Location: M3 Industrial City, Faisalabad
 Start of Production: 2020
 Remarks: The French auto-manufacturing company, partnering with Al-Futtaim, formally
announced to establish its assembly line in Pakistan in 2018 and he formal launch of the facility
construction will be in Q4-2018. Expected to complete by End-2019.
 Production details: Once construction work is completed, the state-of-the-art assembly plant
will have an installed capacity of over 50,000 units per annum. Al-Futtaim and Renault expect the
factory to commence production in 2020. Starting operations with imports of Completely Built
Unit (CBU) and selling them, we can expect CKD assembly. The next key milestone for the Al-
Futtaim Renault Pakistan project will be the establishment of a dealership network across the
country.

Muhammad Ali Shahid
©
AL - FUTTAIM RENAULT
Duster – 1500 CC *Captur – 1500 CC
*Lodgy – 1500 CC
*Pulse – 1500 CC
*Kiwid– 1500 CC
* = tentative

Muhammad Ali Shahid
©
United Motors (Pvt) Ltd.
 Name: United Motors (Pvt) Ltd.
 OEM: United
 Local Group: United Group
 Website: https://unitedcars.com.pk/
 Investment: USD 19.1 million
 Plant Location: Lahore
 Start of Production: 1st half of 2018
 Remarks: United Motorcycle Manufacturers has already completed their road test for
first local production vehicle in association with Chinese Automakers within Apr '18.
 Production details: United Bravo is the first ever CBU unit of a Pakistani company;
hence it’s the start of a journey, not the end. They will soon shift towards localization of
Bravo hatchback whereas the company within a few months intends to launch an
automatic variant too. It means that the company, instead of introducing its new models
in CBU form, has taken a risk to start assembly of 800cc vehicles. It also means that the
company has procured CKD parts from its Chinese Principal and also from local vendors.

Muhammad Ali Shahid
©
United Motors (Pvt) Ltd.
Bravo – 800 CC

Muhammad Ali Shahid
©
Volkswagen
 Name: Volkswagen Pakistan
 OEM: Volkswagen
 Local Group: Pakistan Premier Motors (PML)
 Website: https://www.volkswagen.com/
 Investment: N/A
 Plant Location: Karachi
 Start of Production: Not Announced
 Remarks: Volkswagen has signed a final agreement with Pakistan Premier Motors
(PML) for manufacturing and assembly of commercial vehicles in Pakistan. It should be
noted that the two companies first signed a letter of intent (LOI) back in June 2017.
 Production details: Volkswagen is making its entry to Pakistan through
manufacturing commercial vehicles as per the license set forth for the completely
knocked-down cars (CKD) once they are shipped to an assembling facility within the
country’s boundaries. Premier Motors would assemble vehicles from completely knocked-
down (CKD) kits.

Muhammad Ali Shahid
©
Volkswagen
In First Phase
In Second Phase
Transporter T6– 2000 cc Amarok – 2000 cc
Caddy - 1600 cc Skoda - 1600 cc

Muhammad Ali Shahid
©
Forland
• Name: Foton JW Auto Pvt ltd.
• OEM: Changsha Foton Vehicle Technology Co. Ltd
• Local Group: JW SEZ Group
• Website: https://jwforland.com
• Investment: USD 150 million
• Plant Location: Raiwind road, Lahore
• Start of Production: May 2018
• Remarks: JW-FORLAND was shaped up as an agreement between Changsha Foton Vehicle
Technology Co. Ltd. and JW SEZ Group was signed back in December 2016. JW-FORLAND
became the first Pakistani company to have a 50/50 business deal with a leading Chinese
company in the auto sector. It is also for the first time in auto sector of Pakistan that due to
this agreement the Chinese technology will be transferred to Pakistan that includes
specialized parts like transmission, engine etc.
• Production details: Foton JW Auto parks assembly plant near Raiwind, they're expected to
start proper production in May as harvest season brings high demand for such vehicles. In
beginning, imported cbu's are being sold in the market. JW Forland had imported 150+
Forland units in the last six months which had been sold and after receiving good response
from the consumers the company decided to initiate local assembly

Muhammad Ali Shahid
©
Forland
Bravo 1.0 – 1800 cc
C312 – 2700 cc
C311 – 1800 ccC19 – 1800 cc
Bravo 3.0 – 2700 cc

Muhammad Ali Shahid
©
Rahmat Group
 OEM: Multiple Chinese Car Manufacturers( Haohong Motors,
Weifang Shandong Electric Power Technology Co Ltd, Shanghai
Shenlong Bus Co Ltd, Wuxi Shengbao Electric Vehicle Co Ltd etc.)
 Local Group: Rahmat Group
 Website: N/A
 Start of Production: Not Announced
 Remarks: Rahmat Group is bringing electric vehicles to Pakistan. A
framework agreement of joint venture for manufacturing of world
class buses in Pakistan was signed in Chengdu between the Commerce
and Sourcing House Holdings (CASH) of Pakistan and Chengdu Bus
Co. Ltd., State-owned Chinese Company.

Muhammad Ali Shahid
©
Rahmat Group
The Group has marked as much as 14 specialized joint effort assentation’s and Memorandum of
Understanding (MoU) with various Chinese organizations in the ongoing months. This incorporates
concurrences with:
 Electric Power Technology Co,
 Jiangzi Technical Vehicles Manufacturing Co Ltd,
 Jiangsu Fuan Technologies,
 Louyang Xinguang Lithium Science and Technology Co Ltd,
 Zhehang Shangi Tianying Vehicle Industries,
 Yangzhou Daojue New Energy Development Co Ltd,
 Haohong Motors,
 Weifang Shandong Electric Power Technology Co Ltd,
 Shanghai Shenlong Bus Co Ltd,
 Wuxi Shengbao Electric Vehicle Co Ltd, and
 Base Ningbo Foreign Trade Co Ltd.

Muhammad Ali Shahid
©
Master Motors Limited
 Name: Master Motors Limited
 OEM: Changan
 Local Group: Master group of industries
 Website: http://www.mmcl.com.pk
 Start of Production: December 2018
 Remarks: Master Motor Corporation, part of the Master group, will collaborate with
China-based Changan to manufacture crossover SUVs as well as light commercial
vehicles in Pakistan, establishing a plant in Karachi with an aim to export units to other
countries as well.
 Production details: The company will immediately launch two of its models as CBUs;
these will include the 1.0 liter Karvaan minivan, and the 1.0 liter M-9 pickup. However the
CKD assembling will commence by December which will include, the Karvaan, M-9 and
the M-8 pickup. The company however plans to launch the CX70T SUV in 2019.

Muhammad Ali Shahid
©
Master Motors Limited
MPV Karvaan – 1000 CC
M9 – 1000 CC
M8 – 1000 CC
CX70 – 1600 CC

Muhammad Ali Shahid
©
Ghandhara Nissan
 Name: Ghandhara Nissan
 OEM: JAC Motor China
 Local Group: Ghandhara Nissan Ltd
 Website: https://ghandharanissan.com.pk
 Start of Production: April 2018
 Remarks: In a joint collaboration with JAC Motor China, Ghandhara Nissan Ltd (GNL) the
company is planning to launch electric vehicles in Pakistani Market, it has started local production
of its JAC X200 pickup. Ghandhara Nissan signed a joint collaboration agreement with JAC Motor
China in April 2016. The line-off event of the first locally assembled unit by Ghandhara Nissan was
held on 2nd April 2018.
 Production details: Ghandhara Nissan Limited has joined hands with Nissan Motors Japan to
start the production of auto parts in Pakistan. This was announced by the company in a letter to
Pakistan Stock Exchange informing that the company is going to collaborate with the Japanese
automaker to localize the production of auto parts. Initially, Ghandhara Nissan imported 600 JAC
X200 pickup units in past six months and after that, the company decided to start local production
of the pickup upon receiving a good response in Pakistan.

Muhammad Ali Shahid
©
Regal Automobile Industries Ltd.
 Name: Regal Automobile Industries Limited, Road Prince.
 OEM: DFSK (Dongfeng-Sokon)
 Local Group: Regal Automobile Industries Ltd.
 Website: http://regalautomobiles.com/
 Start of Production: June 2018
 Remarks: Regal Automobile Industries Limited has finished setting up a
production plant for assembling light commercial vehicles and vans. Regal
Automobile will soon launch its product for the Pakistani auto market. Regal
Automobile Industries has already entered into a technical agreement to
assemble vehicles.

Muhammad Ali Shahid
©
C37 – 1500 cc
K01 – 1300 cc
K07 – 1300 cc
Regal Automobile Industries Ltd.
Loadhopper– 1300 ccK05 – 1300 cc
Pasajeros V - 1500 cc

Muhammad Ali Shahid
©
Khalid Mushtaq Motors (Pvt) Limited
 Name: MUSHTAQ
 OEM: Chongqing Kuayue (Group)
 Local Group: Khalid Mushtaq Motors (Pvt) Limited (KMML).
 Website: https://www.linkedin.com/in/khalid-mushtaq-motors
 Start of Production: Second quarter of 2019
 Remarks: The company has signed a technical collaboration agreement with China’s
Chongqing Kuayue (Group) Co., a part of Changhan Group, for assembling light
commercial vehicles and mini passenger vans.
 Production details: COO KMML said that the company has already imported some
sample units of MUSHTAQ vehicles for testing purpose in CBU condition from our
principal in China. After testing these vehicles, soon they are going to import 100 units of
these vehicles in completely built up (CBU), before starting local assembly of the product,
they are planning to produce our local assembly product in first quarter of 2019.

Muhammad Ali Shahid
©
Sazgar Engineering Works
 Name: Sazgar Autos
 OEM: Sazgar Engineering + BAIC International Development Co.
 Local Group: Sazgar Engineering Works
 Website: http://www.sazgarautos.com/
 Start of Production: June - 2019
 Remarks: Sazgar Engineering Works Limited (SEWL) have announced
that they have signed a “Vehicle Assembly Cooperation Agreement” with a
Chinese Automobile Manufacturer to assemble, manufacture, sales and
after sales service of passenger and off-road vehicles in Pakistan. Though
name of their Chinese partner has not been disclosed yet.

Muhammad Ali Shahid
©
OTHERS
 Habib Rafiq Private Limited.
Habib Rafiq Private Limited is planning to assemble cars, LCVs and SUVs in collaboration with
Shandong Wendeng and Zotye International Automobile. The government has so far not
approved the plan of the company but they have submitted all require documents to concern
department for approvals.
 Cavalier Automotive Corporation
Islamabad based Cavalier Automotive Corporation is in talks with Armaed Vehicles of China.
 Pak China Motors Private Limited.
Pak China Motors, formerly known as Karakoram Motors in partnership with Chongging Lifan
Automobile will invest $24.25 million. Pak China Motors Private Limited has yet to get
environmental clearance from Environmental Protection Agency due to which the company had
closed down their business activities. An official said that the company has revived its plan to
resume its activities.
 Topsun Motors and Engineering Services
Topsun Motors and Engineering Services in collaboration with Chongging Big S and T Dev
Group as well as Mianyang Huarui Automotive will invest $5.43 million in Pakistan’s
automobile sector.

Muhammad Ali Shahid
©
SUMMARY
Many companies have already confirmed their plans for investing in Pakistan in the
coming year, while others are in the process of acquiring the necessary approvals and local
support. 2018 has been exciting for Pakistan’s auto industry as many foreign investors and car
makers have vowed to bring their top of the line vehicles to the local market. At present, the auto
market is dominated by Honda, Toyota and Suzuki. However, Pakistan government passed the
"Auto Policy 2016-21", which offers tax incentives to new automakers to establish manufacturing
plants in the country. In response, Renault, Nissan, Kia, Hyundai, Volkswagen, FAW and many
Chinese car makers have expressed interest in entering the Pakistani market. So far more than 12
automakers have announced to collaborate with different companies in Pakistan, under the
Greenfield as well as Brownfield investment categories. These automobile companies have
collectively made an investment of more than $800 million in our country. Pakistan has not
enforced any automotive safety standards or model upgrade policies. It is a great step by
Pakistan’s government as it will not just boost the auto industry of Pakistan but also create job
opportunities in the country. The economy will flourish and Pakistan will develop further.
Initially, all new OEM will import in CBU conditions to the maximum of 5 years to enjoy tax
benefit offered by government in the latest Automotive Policy. Suzuki Motor Corporation (SMC)
Chairman Osamu Suzuki also expressed his interest to invest $450 million in setting up a second
production plant in Karachi. The government would be giving Greenfield status to Pak Suzuki but
if stakeholders do not agree, government will not be giving Pak Suzuki Motor Greenfield status
for its new plant because this category is only for new investors and new technology.

Automotive industry development in Pakistan

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