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Chinese in Automobile sector of Pakistan

ghazi52

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Chinese tyres have captured 85 percent of the market share in Pakistan, a substantial 45% increase from two years ago, importers.

Back in 2018, Chinese car tyres held 40% of the market share which has since increased to 85%. In the light truck category tyres, China held a share of 30-40% two years ago which has now gone up to 65-70%.

Similarly, China also dominates in truck/bus tyres with over 75% market share which was 40% two years back.

Former chairman of the Pakistan Tyre Importers and Dealers Association (PTIDA) Azim K. Yousufzai said, “Mushroom growth has been noted in the number of dealers who are regularly flooding the market with Chinese tyres.”

The government has reduced the regulatory duty (RD) to 10-20% for various categories imported tyres imported 35% some two and half years ago which also encouraged legal imports, he added.


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ghazi52

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Construction of the first MGMotors Assembly plant is in progress under the supervision of both Pakistani & Chinese experts.
Soon Production will start InshaAllah.
A great step forward for the whole Automotive Industry in Pakistan.

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ghazi52

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Pakistan completed a 15-day trial run of the K9 pure electric bus recently in Karachi.
Co-produced by China's leading new energy vehicle manufacturer BYD and its Pakistani partners,
it is the first pure electric bus in Pakistan and the 1st formal commercial vehicle in Sindh Province.
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ghazi52

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Sazgar Engineering Works Reveals its New Partner in Car Manufacturing

The latest notification by Sazgar Engineering Works Limited (SAZEW) details that it has contacted the concerned government authorities to obtain approval for the manufacturing, assembly, sales, and after-sales service of passenger and commercial vehicles under the name of ‘Haval’.

Haval is a Chinese automotive brand that is a subsidiary of a larger automotive group called Great Wall Motors. Conceived in 2013, the company specializes in manufacturing crossovers SUVs and off-road SUVs.
The automaker currently enjoys a presence in several countries including Australia, Argentina, Bangladesh, Bulgaria, India, New Zealand, Russia, South Africa, Benin, Tunisia, Côte d’Ivoire, Chile, Paraguay, Ecuador, Guatemala, Bolivia, Peru, Malaysia, Saudi Arabia, the UAE, Iraq, and Iran.

It is also reportedly working on an all-electric SUV, whose concept it revealed in February last year. The SU-EV in question has coincidentally been dubbed the ‘Concept H


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ghazi52

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Prince DFSK revealed on its official Facebook page yesterday that another new SUV is being co-developed by DFSK and Huawei, and it could be “hitting the roads of Pakistan soon”. It would also be a Seres product called the SF5 which would be a premium EV, featuring the powertrain and mechanicals from DFSK and the software and tech features from Huawei.

It remains to be seen, however, as to which of the aforementioned cars would make it to the Pakistani market soon.


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ghazi52

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SLM Tyres to manufacture 600,000 tires in first phase: George Zhang

30 May 2021



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BEIJING, May 30 (APP):After Service Long March Tyres Ltd (SLM Tyres) is put into production, the production capacity of the first phase is expected to be 600,000 tires, with a total of 2.4 million of the three phases, which will greatly improve the on-time supply in Pakistan’s domestic and foreign markets, Director, George Zhang said.

Pakistan’s freight transport is mainly by road. In recent years, the market demand for TBR is becoming more and more exuberant, increasing at an average annual rate of 10%.

Every year, Pakistan spends US $300 million to US $400 million in foreign exchange on importing TBR, and the completion of the joint venture project will not only directly serve the needs of the local market, solve 700-800 jobs, but also generate foreign exchange earnings of more than US $100 million, becoming a new growth point for Pakistan’s exports, he said in an interview.

In 2019, Chaoyang Long March Tyre Co. Ltd and Pakistani Service Industrial Ltd reached a joint venture agreement to work together to make up for the gap in Pakistan’s tire manufacturing industry, China Economic Net (CEN) reported on Sunday.

As people pay more and more attention to energy saving, emission reduction and green environmental protection, “green tire” has become the development trend of the global tire manufacturing industry.

In this regard, Zhang said, “SLM Tyres will carry out whole tyre life cycle environmental management in the aspects of raw material selection, technical formulation, production organization, sales, product recovery and so on, so as to better improve production efficiency and reduce carbon emissions. We are fully committed to making green tires in Pakistan.”

Telling reasons for choosing Pakistan as the first country to set up joint venture and factory overseas, Zhang stated that, “our Pakistani partner SERVICE has a strong desire to produce TBR and has good experience in tyre production. Pakistan has abundant human resources, its staff costs are lower than those in Southeast Asia, and investment in building a factory in Pakistan also helps to avoid countervailing, anti-dumping and trade war.”

Currently, Chaoyang Long March Tire Company is promoting the listing of the company to realize the great-leap-forward development of the enterprise. Zhang is also full of confidence about the future development of Service Long March Tyres Ltd.
 

ghazi52

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A delivery of 1,100 MG HS SUVs arrived at the Karachi port, as per a recent Automark Magazine update published by Hanif Memon.

However, the customs office may take some time to clear the latest inventory of imported HS SUVs, which means customers will have to wait a little longer.

Due to the first locally-assembled MG HS SUV that rolled off the Lahore-based assembly plant lately, this is a significant step because these vehicles may be the last CBU models for the Pakistani market.


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ghazi52

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Pakistan-China automobile industry collaboration to bring in joint benefits

August 21, 2021



ISLAMABAD, Aug.20(Gwadar Pro) – As far as China’s surrounding markets are concerned, Pakistan has a huge advantage over many other markets in terms of investment environment and political stability. Chinese automobile enterprises should proceed from the perspective of industrial layout rather than product sales, with spare parts industry clusters, and aim at the surrounding and even European and American markets through cooperation with Pakistan.
The above views were expressed by Mr. Jian Peng (Philip), Chief Represent of Pakistan Shenglin Consulting Co., Ltd. (PSC) who has been working in the Automobile industry for over 20 years and communicating the feasibility of investment and production capability transfer to Pakistan. He believes that Pakistan is a window for China to the world, and it is also a bridge and link for Chinese products and technologies to connect to the world.


Right time to invest in the automobile industry

The development of the automobile industry is a manifestation of a country’s comprehensive national strength and an important indicator of a country’s economy. As a leading industry driving the national economy, the upstream of this huge industrial chain involves raw materials, including steel, oil, rubber, etc., while the middle stream touches on processing and manufacturing, machinery and equipment, peripheral supporting industries, and downstream reaches the market, retail, and consumer finance. Philip said that the whole production and marketing process of a vehicle can provide the employment to at least 20-30 people.

“The current situation of Pakistan’s automobile industry is very similar to that of China in the early 1990s, and its consumer market is about to take off.” Philip highlighted that “the Pakistani government is also aware of the necessity to increase investment in the automobile industry, from strengthening road infrastructure construction to investment policies in special economic zones, as well as measures to encourage and stimulate consumption. We can all see that the automobile industry is about to usher in a ‘blowout’ period in Pakistan.”

Currently, the biggest difference between Pakistani and Chinese vehicles is that Pakistan has the right-rudder vehicle market, so many Chinese auto companies are not ready to fully enter the Pakistani market. “Nevertheless, if the cooperation between the China and Pakistani automobile industry faces the international consumer market, and Chinese companies can transplant the European and American standards they have learned to Pakistan, cars assembled in Pakistan can expand the left-rudder car market.” Mr. Philip explained.


Undertaking the mission of assisting Pakistan in the rapid establishment of the spare parts industry

The entry of the Chinese automobile into Pakistan undertakes the mission of assisting Pakistan in quickly establishing a matching industry of spare parts and quickly realizing the localization of spare parts. From the perspective of the orientation of Chinese investment in Pakistan, the investment in the whole industrial chain in Pakistan, rather than simply CKD, is an important opportunity for cooperation between the two countries in the future. Mr. Philip underlined that China’s technology and equipment output and production capacity transfer can quickly pull Pakistan’s basic workpiece supporting capacity. Once Pakistan has formed the relevant supporting capacity of the automobile, the manufacturing and maintenance costs will be greatly reduced.

The cooperation between China and Pakistan in the automobile industry is mainly dominated by fuel vehicles at present. As a future trend, new energy vehicles have attracted widespread attention, but they are still in the trial period of the market, which needs further observation.

“Pakistan’s entry into the field of self-driving can first be considered from some specific application scenarios and site environments, such as the automatic loading and unloading of ports and terminals, taking the lead in realizing the relative safety and stability of self-driving in engineering infrastructure, which can also effectively save labor resources.” Mr. Philip further introduced that it can be regarded as a scientific research project. Pakistani R&D institutions, universities, scientific research institutes, and supporting suppliers can strengthen cooperation with China to seek technological landings and breakthroughs.
 

ghazi52

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Sindh Signs Agreement With Turkey, Chinese Companies For Bus Project


The government has given eight billion rupees to the transport department for the project in a very difficult time, Awais Shah speaking on the occasion said.

“It is the first project of 250 intercity buses, while another agreement for 150 will also be finalized soon,” the provincial minister added.

“It is a maiden positive step in the public transport sector in Karachi,” he further said.

He vowed to provide better travel facilities to Karachi and other cities of Sindh.

Awais Qadir Shah in a Sindh cabinet meeting in April this year briefed that his department would procure 250 Diesel Hybrid Electric Buses under the Sindh Intra-District People Bus Service project.

He told the cabinet that these buses would operate in Karachi, Hyderabad, Sukkur, Larkana, Mirpurkhas, and Shaheed Benazirabad.

The Mass Transit department has hired a professional consultant and the project would cost Rs 8 billion, the minister told the meeting.

The cabinet approved the proposal and gave go-ahead to the Transport department to procure the buses.
 

khail007

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Raise Duties Clamp Down On Afghan Transit Leakages And Encourage Local Manufacturing
Exactly, the only issue here is the local manufacturer will become a mafia and totally dependent on the government for policies to save their interests and will not pass on any benefit to the common man.
 

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