German Truck Company MAN SE to Enter Pakistan’s Auto Sector

[SherDil]

Thanks to the new auto-policy, Pakistan’s automobile industry is expanding steadily and the latest to join its ranks is MAN SE, a manufacturer of heavy trucks.

Due to the introduction of CPEC in Pakistan, the demand of heavy vehicles is expected to grow quickly and manufacturers are flocking to Pakistan to capitalize on this. Volvo has already signaled its plans and now it has another competitor (MAN SE) vying for the same space.

The 250-year old German company has been analyzing the Pakistani market for over five years and the company is expected to make the official announcement about its entry in couple of months. MAN SE is currently operating through fully owned subsidiaries or joint ventures with local companies in a number of prominent countries such as India, Poland, Turkey, China, the US, the UAE South Africa, Uzbekistan and Portugal.

According to auto-industry officials, the National Logistic Cell (NLC) is to give ‘significant orders’ to MAN SE as Pakistan’s leading logistics company is expected to replace its old fleet.

Heavy Vehicles Required For CPEC
CPEC has made a significant impact in Pakistan to revolutionize things. With a number of projects on-going and pending, heavy vehicles requirement is crucial. To meet these requirements, companies like NLC prefer to use imported trucks due to their high quality.

Instead of opposing the decision, local companies agree that German trucks are more suited to commute on high altitude of Karakoram Highway (KKH), one of the highest paved roads worldwide, connecting Pakistan and China.

Pak-German Partnership
The auto partnership between Pakistan and Germany seems to be flourishing. Audi and Volkswagen are already setting up an assembly plant in Karachi and MAN SE is another German brand to join them.

MAN SE, like Audi, is also Volkswagen AG wholly-owned subsidiary. The company is not only expected to set up the plants in Pakistan for local business but also export the cars, which in economical terms, represents a huge development.

Germany representatives are also expected to join Pakistan in the Pakistan Auto Show (PAPS) 2017, which is to be held from 3rd March at the Expo Centre, Karachi.

https://propakistani.pk/2017/03/02/german-truck-company-man-se-enter-pakistans-auto-sector/

 

[Devil Soul]

German truck maker MAN SE to set up assembly plant in Pakistan
By Farhan Zaheer
Published: March 2, 2017
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Company also expected to export trucks from country, say industry officials. PHOTO: REUTERS

KARACHI: German truck maker MAN SE is at an advanced stage of setting up a plant in Pakistan, industry officials say.

Forecasting greater demand of heavy vehicles under the China-Pakistan Economic Corridor (CPEC), vehicle manufacturers are flocking to Pakistan to explore opportunities of investment with MAN SE being the latest addition to the growing list.

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MAN SE, which has been watching the Pakistan market for over five years, is expected to officially announce its decision within a couple of months.

It is pertinent to mention that 75% of MAN SE’s ownership rests with the Volkswagen Truck and Bus GmbH, a wholly-owned subsidiary of Volkswagen AG.

Industry officials say this is a big development for Pakistan because the company is also expected to export trucks from the country.

The National Logistic Cell (NLC) is expected to give significant orders to MAN SE because Pakistan’s leading logistic company is looking to replace its old fleet, an auto industry official informed.

Officials from the German company are also coming to Pakistan to participate in the Pakistan Auto Show (PAPS) 2017, being held from March 3 at the Expo Centre, Karachi.

CPEC is expected to generate huge demand for trucks in Pakistan and industry officials say Pakistani companies like NLC would prefer to use German trucks due to quality concerns. Local industry officials say German trucks are better placed to commute on extraordinary high altitude of Karakoram Highway (KKH) – one of the highest paved roads in the world that connects Pakistan and China.

In February 2012, German Embassy’s Commercial Section Head Samy Saddi, while talking to media, said that German auto giant MAN was looking at Pakistan as a potential market.

The 250 year-old company operates through fully owned subsidiaries or joint ventures with local companies in India, Poland, Turkey, China, the US, the UAE South Africa, Uzbekistan, Portugal etc.

After years of stagnant economic activity and poor automobile sales, Pakistan is witnessing huge demand in heavy vehicles due to CPEC, macroeconomic stability and relative improvement in the country’s security situation.

Earlier, it was reported that Volkswagen Commercial Vehicles is in final talks with Premier Systems Private Limited – the authorised importer of Audi vehicles in the country – to set up a manufacturing/assembly plant for its Amarok and T6 (transporter range) models.

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In the past year, a number of international auto makers have expressed interest to set up manufacturing plants in Pakistan.

France’s Renault and South Korea’s Hyundai and Kia have announced they will soon start assemblies in Pakistan, in partnership with local companies.

This will mark a return for Kia and Hyundai, which left in the previous decade when their local partner suffered financial problems.

Published in The Express Tribune, March 2nd, 2017.

 

[Blue Marlin]

will they be making the parts there or will it just be a standard local assembly?

 

[Kambojaric]

will they be making the parts there or will it just be a standard local assembly?

MAN SE seem to be establishing a simple assembly plant, but that too is great news for us giving the dearth of FDI over the past decade. As per the source

" Volkswagen Commercial Vehicles is in final talks with Premier Systems Private Limited – the authorised importer of Audi vehicles in the country – to set up a manufacturing/assembly plant for its Amarok and T6 (transporter range) models."

So maybe somewhere down the line MAN might start manufacturing as well.

 

[xyxmt]

will they be making the parts there or will it just be a standard local assembly?

no investor start making everything at first, they first see the success of their product before going deep in manufacturing...business is about profitablity