The Big three Automobile faces of Pakistan, Honda Atlas, Suzuki, and Toyota IMC, have faced tough competition as Government recently awarded international automakers Greenfield status to invest in Pakistan. While two were granted Brownfield Status, This was done under the Auto Development Policy of 2016-2021.
Two other companies have been awarded the status of Brownfield Status. As per the investment status, these companies are coming in with a handsome amount of more than $1.1 billion.
The Greenfield Status lets the investors or the automaker companies install an independent automotive assembly in Pakistan to produce cars that are not being made in Pakistan.
Brownfield Status awards the revival of non-operational assembly or not a working assembly facility through joint ventures.
The Automakers that have been awarded the Greenfield Status to invest in Pakistan are
- Hanteng Company Motors (Pvt.) Ltd
- Khalid and Khalid Holdings (Pvt.) Ltd
- Topsun Motors and Engineering Services (Pvt.) Ltd
- Khalid Mushtaq Motors (Pvt.) Ltd
- Hyundai Nishat Motors (Pvt.) Ltd
- Pak China Motors (Pvt.) Ltd
- Master Motors Ltd.
- United Motors (Pvt.) Ltd
- Regal Automobile Industries (Pvt.) Ltd.
- JW Auto Park (Pvt.) Ltd.
- Kia Lucky Motors Pakistan Ltd.
- Sazgar Engineering Works (Pvt.) Ltd.
- Al-Futtaim Automotive Pakistan (Pvt.) Ltd.
The other companies reviving their manufacturing and operational statuses are Deewan Farooque Motors and Ghandhara Nissan Ltd.
The Auto Development Policy is an investment-friendly policy that will allow the Pakistan Automotive Industry to market the local automakers a competition to groom. And, if the policy goes as planned, the consumers would be blessed with more choices for less money value. Future cars will provide better quality, environmental, and safety standards.
European Automakers-French Renault and German Volkswagen are slow in the investment process since their statement that they set up their manufacturing and assembly plants in 2018.
In June 2018, Renault acquired land at M-3 in the special economic zone of Faisalabad. But, then, there’s no progress and update on the progress up till now. The same goes for the state of Volkswagen, which has yet to acquire land for its plants in Karachi- the economic hub of Pakistan.