Home Business Two more Chinese companies are entering the auto market

Two more Chinese companies are entering the auto market

Two new entrants are setting up to enter Pakistan’s automobile sector from China namely LIFAN and Beijing Automobile Works (BAW).

auto market
  • 489
    Shares

News Analysis |

Two new entrants are setting up to enter Pakistan’s automobile sector from China namely LIFAN and Beijing Automobile Works (BAW). This takes up the count of new entrants to 8; the others being Kia, Renault, Hyundai, Volkswagen, United and Nissan.

An official of the Engineering Development Board (EDB) was reached out for comment by PakWheels, an online auto dealership platform and publication, to whom the official confirmed that both BAW and LIFAN have applied to enter the country’s burgeoning automobile sector. To quote, the official shared BAW has applied for the Greenfield status and Cavalier Autos was their domestic partner.

Once the appropriate authorities give the go-ahead to both the companies, they will be able to build their assembly plant in Pakistan. Renault, Kia and Nissan are in the process of building their assembly lines and reportedly United has already produced a batch of the highly anticipated United Bravo, the Pakistani solution to overpriced Suzuki Mehran.

Mr Shami stated the company had started work on the documentation process for the production facility in Karachi. MD Jinbei Pakistan shared the company planned to sell 300 to 500 units in the first year of operations and they will be initially importing these vehicles.

Both BAW and LIFAN are originally expected to launch light commercial vehicles in Pakistan. Also, the official shared, with the publication, that the Haier Group is also planning to enter the auto industry by launching passenger vehicles and its application was currently under scrutiny by the EDB. The official shared that there was a possibility that of Ford entering Pakistan’s automobile sector.

Lifan Industry (Group) Co Ltd engages in the research and development, production, and sale of automobiles, motorcycles, and engines in China.

Read more: Car sales climbing: Auto manufacturers

BAW engages in developing, manufacturing, and supplying light off-road vehicles and trucks for military and civilian markets. It offers commercial and special vehicles, such as military and civilian light off-road vehicles, light and middle trucks, amphibious vehicles, sports utility vehicles, mini-buses and ambulances, military cars, and special off-road vehicles.

Another Chinese automobile manufacturer, Jinbei Pakistan, is also set to enter the fray as the company proclaimed it would be importing vans and minivans and will commence production in next two years. Jinbei is a Chinese automobile manufacturer headquartered in Shenyang and its products include automobiles, microvans, and automotive components. It is owned by the Brilliance Auto Group, which owns a 50 percent stake of BMW brilliance – a joint alliance with BMW which manufacturers, distributes and sells BMW vehicles in China.

Renault, Kia and Nissan are in the process of building their assembly lines and reportedly United has already produced a batch of the highly anticipated United Bravo, the Pakistani solution to overpriced Suzuki Mehran.

In a comment to a local publication, Managing Director Jinbei Pakistan Usman Shami said the company would be initiating with completely built units (CBUs). Mr Shami stated the company had started work on the documentation process for the production facility in Karachi.

Read more: Beijing auto show opens in world’s largest market

MD Jinbei Pakistan shared the company planned to sell 300 to 500 units in the first year of operations and they will be initially importing these vehicles. Jinbei Pakistan is set to import an 11-seater X30, a vehicle similar to Suzuki’s APV, which will have a provisional price of Rs1.66 million.

And it will import a larger model called X30L costing Rs1.71 million. Vehicles with 14 to 16-seat capacity will have a higher cost as  H1 and H2-Hiace will cost around Rs2.58 million and Rs3.55 million.


  • 489
    Shares

LEAVE A REPLY

Please enter your comment!
Please enter your name here