MIP Approves New Automakers To Setup Car Assembly Plants In Pakistan
Pakistani Auto industry is dominated by Japanese car manufacturers which is now being saturated with other players in the global industry, creates worries for long reined Japanese dominants. Ministry of Industry and production (MIP) Pakistan has recently approved three new (non-EU) car manufacturers better to say assemblers to start their assembling plants in Pakistan.
Kia-Lucky Motors Pakistan, United Motors Private Limited and Nishat Group are provided with approval under Greenfield investment category. It is estimated that all three automakers would invest roughly $372 million to erect assembly and manufacturing plants in Pakistan.
Kia-Lucky Motors would invest the most summing up to $191 million, whereas Nishat Group would be the runner up with $164 in investment. United Motors would only invest $18 million pretty tiny amount as compared to other enthusiasts.
But with this little investment comparatively government is happy to award United Motors a Category-A Greenfield Investment Status for assembling and manufacturing of vehicles, according to the MIP.
MIP also informed that nine companies in total applied for manufacturing and establishing assembly plants in Pakistan, though no further details were provided on which nine companies sought for approval, only three companies were granted approval in the initial stage.
Nishat Group And Hyundai Will Start Manufacturing Cars In Pakistan
Another very important development worth mentioning here is the end of Engineering Development Board (EDB) which has been wiped out on directives of PM’s office. The EDB had allegations of corruption and making it difficult for setting up new car manufacturing and assembling plants in Pakistan surfaced.
Nishat Group as previously reported, already signed an agreement with South Korean Hyundai Motors to setup Car manufacturing plants in Pakistan. As being a successful Business group, Nishat Group would be able to compete the market competitors effectively.
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