Pak auto industry among main beneficiaries of CPEC: PCJCCI chief

LAHORE: “Automobile industry is an integral part for the development of highways, roads and infrastructure and it has great significance in CPEC-related projects”. Wang Zihai, President Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) stated this during a think tank session held at PCJCCI Secretariat on Wednesday.

He added that CPEC projects are strategically very important and beneficial for the economies of both countries and Pakistan’s automobile industry is one of the main beneficiaries of CPEC.

China-Pakistan automobile cooperation a win-win choice, new Chinese automobile entrants in Pakistan will bring more options to local customers.

One Belt-One Road is developed and started its operation, through which Pakistan import automotive parts and kits from China on cheaper cost.

Due to unemployment factor, Pakistan has low labor costs, so Chinese origin vehicles can be developed locally in little investment. These vehicles can capture the local market if these are sold in economic prices to Pakistani people. He also added that due to the high rate of inflation in Pakistan, the government should initiate low-cost and budget friendly vehicle manufacturing for the ease of people.

Ehsan Choudhry, Senior Vice President PCJCCI shared that the CPEC has definitely opened doors for Chinese companies to come here “BIG” and they are willing to invest in Pakistani automobile sector.

He added that one of the automobile giants of China, Chery launched its new RHD strategy in 2019 and selected seven countries as key potential markets for RHD, including Pakistan. It has partnered with Ghandhara Nissan Ltd to invest Rs 2.4 billion in Pakistan production of Tiggo Series SUVs in January 2021.

At present, Chery Automobile products included saloon cars and SUVs. Choosing to manufacture SUV models in Pakistan is based on the fact that the global consumption trend is upgrading from cars to SUV, SUV is more suitable for Pakistan road conditions, and Chinese companies are competitive in the SUV market segment, etc.

Sarfaraz Butt, Vice President PCJCCI also highlighted that a spokesman for Brilliance China Auto, German luxury carmaker BMW’s Chinese mainland partner, said that Chinese automakers are planning to expand their business network in Pakistan. They want to build a new automobile assembly plants in a number of countries, such as Pakistan. Building assembly plant in Pakistan will enable them to explore Pakistan markets faster than direct vehicle exports.

He added that The First Automobile Works (FAW) has already working with a Pakistani partner and having one assembly plant in Karachi, they are increasing their market share gradually.

Salahuddin Hanif, Secretary General PCJCCI said that Pakistan’s automobile sector is vast and we can attain contemporary manufacturing of cars with the help and modern technology of our Chinese brethren.

He added that many Chinese companies are establishing their commercial truck and pickup assembly plant in Pakistan with Pakistani partners. It will certainly change the horizon of Pakistan automobile industry.

Copyright Business Recorder, 2022