The new Auto Industry Development Policy of Pakistan at one end is enforcing the existing automobile manufacturers in Pakistan to focus more on international safety and travel standards and at other end are encouraging the leading automobile manufacturers to enter Pakistan to start either assembly and even manufacturing.
At least four leading automakers of the world, other than Japanese car makers, are planning to enter Pakistan by the end of the running year or first quarter of the year 2018. Here are those four non-Japanese automobiles makers planning to enter Pakistan:
- French Renault
- South Korean Hyundai
- South Korean Kia
- German Audi
First three are confirmed to start assembly in the running year. French Renault is the first car manufacturer who has partnered with Gandhara Nisan to make an investment of 100 million dollars. Then comes South Korean Hyundai and Kia who are partnered with Nishat Group and Younis Brothers respectively.
After the announcement made by Renault, Hyundai, and Kia, German Audi approached to the Board of Investment and offered the proposal of constructing Original Equipment Manufacturers plant in the country. According to automobile experts, if this happened to become a reality in few years then Pakistani automobile industry will get additional half million cars by the end of 2025.
Pakistan is the sixth largest populated country in the world. Half of the population belongs to under thirty age group. The access to a car is still low as compared to most of the countries. The access to car to population ratio is thirteen for one thousand. It is a golden opportunity for the international brands to enter in Pakistan to get competitive at the earliest stage.
“The development of infrastructure under the $57bn China-Pakistan Economic Corridor (CPEC), a large young population, increasing buying capacity, rapid urbanization and a growing economy offer an enormous opportunity to carmakers to come and invest here,” says Rao Khalique, a Lahore-based banker.