All Car makers shifting assembly plants to Punjab

[Asian.Century]

Auto makers shifting assembly plants to Punjab

Bin Qasim Industrial Park (BQIP) and Korangi Creek Industrial Park (KCIP) investors claim that National Investment Park (NIP) is going through administrative difficulties. Thus, the projects are being delayed, cost and time are increasing. So many automakers are shifting their assembly plants to Punjab.

Hyundai had initial plans of setting up its assembly plant in BQIP. But now because of the bureaucratic problems of NIP Hyundai is shifting its investment to the Faisalabad Special Economic Zone (FIEDMC).

Similarly, Renault and Al-Futtaim Motors also facing issues to set up an assembly plant in Karachi. National Industrial Parks Development and Management Company (NIP) is demanding Renault to sign an agreement saying clearly that any rise in land cost will be provided by the company for developing a vehicle manufacturing plant in Karachi city. Renault is also now compelled to change its plant location to Faisalabad.

Must read: Renault is launching operations in Pakistan
These issues have forced the investors to talk to the National Industrial Parks and Development and Management Company, discuss the problems and ask why the infrastructure which was promised is not available at BQIP.

As per the sources, the stakeholders of the auto companies even agreed to purchase land of BQIP giving the double land price at the Port Qasim Eastern Zone. NIP, in turn, promised the establishment of the best industrial park with all the facilities and infrastructure. Furthermore by January 2018 electricity connections were promised. But its March 2018 now and the project is just facing lack of facilities and no proper infrastructure. NIP does not have an extra electricity supply to provide to the automaker’s project.

Now as per NIP the Board of Directors will decide the power policy and facilities. Chairman NIP Muhammad Afzal was contacted by the investors but he never answered.

An SOS has been sent by BQIP investors to NIP to issue no objection certificates for them to approach other utility firms for power supply. Now even NIP issues the NoC it will take at least 10 months to get the power and gas connections.

 

[MBT 3000]

thanks pmln

 

[Shabi1]

Suzuki and Toyota, the largest car manufacturers are still located near Karachi.

I think it's also a matter of existing manufacturer's lobbying and using influence to make things harder for new rivals. Suzuki especially manages to still build feature stripped and outdated models yet boast record sales since absence of local rivals in the small car segment. Heard Toyota is investing and launching a new small car soon as 1.3litre Corolla engine production hard to get. The 1.3 litre Corolla variant is only being built in Pakistan and no place else.

 

[Asian.Century]

Time for new car entrants to come also.

Mercedes is a great start to assemble its cars and trucks in Pakistan.

 

[denel]

Suzuki and Toyota, the largest car manufacturers are still located near Karachi.

I think it's also a matter of existing manufacturer's lobbying and using influence to make things harder for new rivals. Suzuki especially manages to still build feature stripped and outdated models yet boast record sales since absence of local rivals in the small car segment. Heard Toyota is investing and launching a new small car soon as 1.3litre Corolla engine production hard to get. The 1.3 litre Corolla variant is only being built in Pakistan and no place else.

1300 cc engine was discontinued a long time ago; here Corolla starts at 1400cc/1600cc/1800cc/2.0D

 

[xyxmt]

Suzuki and Toyota, the largest car manufacturers are still located near Karachi.

I think it's also a matter of existing manufacturer's lobbying and using influence to make things harder for new rivals. Suzuki especially manages to still build feature stripped and outdated models yet boast record sales since absence of local rivals in the small car segment. Heard Toyota is investing and launching a new small car soon as 1.3litre Corolla engine production hard to get. The 1.3 litre Corolla variant is only being built in Pakistan and no place else.

they already have plants setup, its the new plants thats having trouble getting NOCs because of Zardari tax i believe