The latest auto policy will soon be showing its effects on the Pakistani auto sector. The policy is quite generous for the foreign investors. Only last year, representatives of auto companies like Volkswagen and Fiat were meeting with Pakistani governmental officials lobbying for a way to get in the market. However, there is silence on that front. But on the other hand, Chinese have something up their sleeves.
Just recently, the director of JAC Motors, Mr. Chen Zhi Qiang, had a meeting with Provincial Minister for Labour and Human Resource Raja Ashfaq Sarwar. Mr. Qiang was leading a 6-men team, and topics of various potential investment fronts were discussed including potential investment in the automotive sector. And in the meeting, the Chinese showed deep interest in setting up an automobile plant in Punjab.
The Minister welcomed the idea and told the Chinese that foreign investment is always welcomed and that the Punjab government has set up various industrial zones throughout the province. Also, there are tax exemption schemes to promote foreign investment.
JAC Motors is a Chinese state-owned automaker and was founded in 1964. Don’t think JAC as something trivial and hence brushing off their investment proposal as a waste of time. JAC Motors is one of the top ten automakers in China and produced more than 440,000 units in 2012. The Chinese automaker joined hands with Korean carmaker Hyundai in the early 2000s and now plans to invest in electric cars.
It is yet to be seen if the proposal will materialize or not. Also, JAC doesn’t just make cars; they are also a major bus producer. So there is a decent possibility that the proposed investment is for heavy transportation assembly plant rather than a car assembly plant. But whatever it is, we hope it is beneficial for Pakistan and its people.