LAHORE – A Chinese automobile company is planning to set up a plant in Pakistan to assemble commercial vehicles.
One of the leading automotive companies in China, King Long Industry in collaboration with Pakistan’s Shine Autos is contemplating to establish an auto assembly plant near Lahore, as per local media reports.
They have completed the initial paperwork, and now an official request has been made to acquire a 100-acre land for the factory.
According to available documents, the joint venture is projected to attract an investment of $200 million. The company will produce both buses and trucks at the plant.
“Initially, the joint venture plans to produce three types of commercial vehicles, including commercial vehicles with a capacity of 15 passengers, buses with a capacity of 58 passengers, and mini truck of different capacities,” according to the reports.
Pakistan Auto Policy 2016-21
The joint venture has been planned so that the Chines automotive company could capitalize on the incentives the Pakistan Auto Policy 2016-21 offers to new investors.
The policy aims to promote the automotive industry by bringing in more investment and ensure better quality.
Under the policy, the government has allowed investors duty-free import of machinery and plants for setting up their manufacturing facilities in the country.
After groundbreaking of their projects, foreign companies can also import 100 completely built units (CBUs) of the same variants at 50 per cent of the regular duty for test marketing.
The policy also lets new investors import non-localized parts at a reduced duty rate for a period of five years. Similarly, the companies can import localized parts at 25 per cent duty.
Another Chinese auto giant, Changan Motors in collaboration with Master Motors have established a plant in Karachi where they are manufacturing crossover SUVs as well as light commercial vehicles.