Chinese in Automobile sector of Pakistan

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Pak-China cooperation will boost Pakistan's automobile transition

Source Staff Reporter
April 24, 2023

SHANGHAI - At the Shanghai Automobile Show 2023, visitors from the global industry marvel at the stunning models of the latest vehicles, experience various functions and learn about the latest technologies.

Nair Chaudhry, who has over 20 years of experience working with China, witnessed the intelligent and innovative growth of the auto industry at the Auto Show. He hoped to take advantage of this platform to partner with more Chinese electric vehicle manufacturers, especially small cars and their component manufacturers.
As a pillar industry of the national economy of Pakistan, the automobile industry is developing with each passing day.

Vehicle category wise fuel driven vehicles, battery electric vehicles (BEV), plug-in hybrid EVs (PHEV) etc. have been upgraded to give more awareness and choice to consumers. The constant influx of brands has also driven the use and development of high technology.

Cherry Group's OMODA South Asia Regional Director QG revealed that
OMADA O (JAECOO) Jacko, It will be launched simultaneously in Pakistan by the end of this year. Mentioning that Pakistan is an important strategic station for Chery in South Asia, he told the reporter that Chery is currently researching the consumer habits in Pakistan to make appropriate improvements to its products in the light of the latest situation. could

Due to the current challenging economic conditions in Pakistan such as inflation and power shortages, import restrictions and natural calamities, vehicle production and sales have declined during the current financial year, making the auto industry one of the fastest growing industries. . Haifone said that there was no upheaval in Pakistan.

He concluded that we have strong confidence in the future market of Pakistan and look forward to the strong growth of Pakistan's automotive industry through our efforts to improve products and services with local collaboration.

 

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Chinese car maker stays optimistic amid turbulence in Pakistan’s Automotive Industry​

China Economic Net
Jun 20, 2023

HEBEI, JUN 20, (China Economic Net)- Public data from the Pakistan Automotive Manufacturers Association showed an 80% year-on-year decline in sales of locally assembled new light vehicles, amounting to only 4,463 units in April 2023. Consequently, cumulative sales for the year dropped by 66.5%, reaching a mere 30,753 units. Scanning the headlines of news articles available online, terms such as "shutdown" and "halt" dominate the discourse on Pakistan's automotive industry.

"Starting this year, Pakistan has encountered unprecedented challenges, not only in the automotive industry but across various sectors.

Many import-dependent industries and manufacturing sectors are grappling with production shutdowns and halts—a phenomenon that has become a normality.” explained Shi Qingke, the vice president of Great Wall Motors, "We have also encountered car parts shortages, similar to most of other automotive companies. However, the problem has been considerably mitigated, and we have no issues with the supply chain." Shi stated with confidence.

Shi Qingke, Vice President of Great Wall Motors

Last year on September 1st, in an event held in Lahore, Great Wall Motors (GWM)’s first factory in Pakistan has officially commenced production, with an annual production capacity of 20,000 units.

Adding to the excitement, on November17th, the GWM Haval H6 HEV made its official debut in Lahore. This news sent shockwaves through the industry as it signifies several groundbreaking achievements, notably being the "first locally assembled new energy hybrid model" in Pakistan.

GWM factory, located in Baoding City, Hebei Province, China.

"Great Wall Motors is the first brand to achieve local assembly of hybrid vehicles in Pakistan, surpassing even Japanese brands, which have been deeply rooted in Pakistan for over 30 years," Shi shared. He further stated, "Moving forward, GWM will progressively introduce plug-in hybrids and fully electric models, bringing the latest in new energy technology to Pakistan and facilitating the country's transition from traditional fuel-powered vehicles to new energy vehicles."

Since the implantation of China-Pakistan Economic Corridor, Pakistan, with its immense market potential and economic vitality driven by a population of 220 million, has attracted the attention of numerous foreign investors. With the continuous improvement of infrastructure, Chinese automotive companies have not only provided a wider range of products for Pakistani consumers but have also established assembly plants in Pakistan, ambitiously striving to become industry leaders despite the economic turbulences.

"Pakistan, the world's fifth most populous country, has a vehicle ownership rate of less than 20 per 1,000 people. In contrast, China reached a rate of 230 vehicles per 1,000 people in 2022. This demonstrates that Pakistan holds unlimited market potential," said Shi Qingke, Vice President of Great Wall Motors Group, in an interview with China Economic Net.

“Currently we are over booking,” Mian Muhammad Ali Hameed, COO of Sazgar Engineering Works Limited, GWM's partner in Pakistan, shared his insights.

"The auto sector in Pakistan was dominated by Japanese vehicles. Unfortunately, the vehicles brought by them were outdated models." Faced with the dominance of Japanese brands in the light vehicle sector, some Pakistani local manufacturers have been seeking breakthroughs. "The world is shifting towards new energy sources, and I believe Pakistan will catch up. Our partner (GWM) has a strong presence in the new energy sector, which is why we chose to collaborate and jointly explore the new energy market."

Moreover, Hameed said that Great Wall Motors' extensive experience in developing and manufacturing right-hand-drive vehicles across various countries facilitated its entry into the Pakistani market without significant obstacles.

"By establishing the assembly plant in Pakistan, we addressed a significant employment concern for our local population, employing thousands of people. More importantly, our future efforts will center on achieving localized manufacturing of specific car parts, lowering import costs and better serving Pakistani consumers. At the same time, this will usher in a technological revolution in Pakistan's automotive manufacturing industry," Hameed explained.

Latest data revealed that the GWM Haval ranked fifth among foreign vehicle brands, with 857 units sold in first 4 months, securing a market share of 2.8% and SUV segment share of 12.5%. From January to April, though the overall market fell by 49% month on month, GWM increased by 94% month on month.

 

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Service Long March Tyre: Leading Pakistan's Automobile Exports and Boosting the Country's Economy​

By Staff Reporter , Mobile World Magazine
Sep 5, 2023

In a significant achievement, Service Long march Tyre has emerged as the largest manufacturer of Truck Bus All Steel Radial Tyres in Pakistan and has also secured the top position as the number one exporter of automobile parts and accessories in the financial year 2022-23.

This outstanding contribution by the domestic automobile industry has played a critical role in supporting the government's efforts to overcome the foreign exchange crisis experienced during the previous fiscal year.

The manufacturing processes at SLM incorporate the latest All-Steel Radial technology, facilitated by extensive in-house research facilities. Service Industries Limited (SIL), in collaboration with Chaoyang Long March Tyre Co. Ltd. (LM), a prominent Chinese manufacturer of all-steel truck and bus radial tyres, and Myco Corporation Pakistan, established the joint venture company known as Service Long March Tyres (PVT) Limited.

Service Longmarch Tyre (SLM) has established itself as the pioneer and leading manufacturer of All-Steel Radial Tyres in Pakistan, with a complete transfer of technology from the start of the project. The facility began commercial production in March 2022 and has since been exporting its products to multiple countries.

 

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Chinese, Pakistani firms sign MoU to establish EV charging stations across Pakistan​

By Zafar Hussain - China Economic Net
Oct 26, 2023

BEIJING - Chairman of the Senate of Pakistan, Muhammad Sadiq Sanjrani, along with a Pakistani delegation, witnessed a Memorandum of Understanding (MoU) signing ceremony between TGOOD, a leading Chinese company, and the REC Group of Pakistan in Beijing on October 25. The aim is to promote environmentally friendly electric vehicles (EVs) in Pakistan.

Chairman Sanjrani said this collaboration has resulted in a strategic partnership aligned with the sustainable green development initiatives set forth by China during the 3rd Belt and Road Forum. The partnership covers areas such as hydrogen vehicle technology, hydrogen filling station infrastructure, EV production, battery production and recycling solutions, and EV charging infrastructure development.

Transport is a major contributor to pollution in Pakistan, making a transition to alternative fuels imperative. However, Pakistan has faced a challenging dilemma, with a lack of charging stations restricting the adoption of alternative fuel vehicles, while limited investment in such infrastructure is primarily due to the scarcity of such vehicles.

The joint venture with REC Group in Pakistan signifies a significant step forward. TGOOD's commitment to expanding in Pakistan, facilitated by integrators within REC Group, is underpinned by a comprehensive Strategic Partnership Framework Agreement, encompassing full technology transfer.

In addition to EVs, TGOOD will also spearhead the development of hydrogen fueling infrastructure in Pakistan. The joint venture is poised to explore regional export opportunities for the products manufactured in Pakistan.

The joint venture's primary mission is to tackle the catch-22 situation that has hindered the transition to alternative fuels in Pakistan.

Through strategic investments in EV components, recharging stations, and export-driven growth, the partnership aspires to resolve these challenges and stimulate the development of a sustainable green transportation ecosystem in Pakistan.

 

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China-Pakistan JV to commence local EV production next month​

By Khalid Aziz
Oct 26, 2023

ISLAMABD - A joint venture between two Chinese companies and one Pakistani company is set to commence local production of electric bikes and three-wheelers next month. The vehicles will be launched at the upcoming Karachi Expo.

This was stated by Jim Li, country sales manager at Dongjin Battery Pakistan, in an interview with Gwadar Pro on October 25.

Dongjin provides batteries, while Benling Group of China offers technical support and the Crown Group of Pakistan has an established network of dealers. These three companies will collaborate to establish Pakistan's leading electric vehicle brand, providing better support for green mobility in the country, Jim Li added.

Dongjin Battery's production facility was founded in 2020 at Port Qasim, Karachi. "We have so far invested $4 million and created 250 direct and 1,000 indirect jobs in Pakistan," he said. "Our products are UPS batteries, e-bike batteries, and motorcycle batteries.

We have made technological innovations, such as adjusting the battery formula and electrolyte concentration according to local climate conditions. These innovations have resulted in our products outperforming those imported from abroad," Jim Li stated.

"We also have plans to export batteries from Pakistan, and set up our factory in Karachi," he said.

Furthermore, "We have already begun preparations for establishing our raw material and casing factories in Pakistan to develop a comprehensive lead-acid battery production system. Our raw material factory will commence production in the latter half of next year, which will help reduce production costs and provide Pakistan's market with high-quality yet cost-effective products," Jim Li concluded.

 

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Pak-China venture Regal automobiles launches its first EV Seres 3​

By Fatima Javed
Nov 21, 2023

LAHORE,- Regal Automobiles, a technical venture between Dong Feng Sokon (DFSK), the largest and most reputed brand in China and RP Group, one of Pakistan's most renowned business conglomerates launched their first Electric Vehicle (EV) Seres 3, in Pakistan.

Since the country’s car industry welcomed a number of electric vehicles recently, this is another update translating the way the auto sector is gearing itself to enhance green technology.

The launch marks a significant milestone in Pakistan’s automotive industry and a major step in addressing the rising fuel costs and shifting focus toward electric cars in the country. The official price, booking details, and delivery time have also been unveiled.

According to the company, the locally assembled Seres 3 is priced at Rs. 9,199,000. The Completely Built-up Seres 3 was selling for above Rs. 10 million. The vehicle is expected to be delivered by March 24, 2024.

The manufacturing facility is located at a 26-acre site in Lahore. The products will be delivered to end customers nationwide through a strong network of 19 independent 3S Dealerships spread across the country.

The company has a workforce of more than 200 people. It invests heavily in training the team members and management employees and creating a culture of high-performing and empowered teams who work seamlessly across the various processes in search of quality and continuous improvement.

Pakistan is catching a ride on the global EV boom as statistics from the International Energy Agency (IEA) show that in 2022, one in every seven passenger cars bought worldwide was an EV, as compared with one in every 70 just five years earlier.

Last year, EV sales rose by 55%, reaching a total of 10.5 million, according to the EV Volumes sales database. Pakistan, in its timely joining the trend, is ramping up cooperation with international EV giants to amplify its own competence.

A number of Chinese companies such as BAIC, Changan, JAC Motors, Great Wall Motors, MG, FAW, and Chery Automobile have established their presence and even formed joint ventures in Pakistan, driving the EV industry in the country towards intelligence and electrification.