Two more auto manufacturer approved as new entrants

Lahore : Engineering Development Board, Ministry of Industries and Production (Mol&P) has further facilitated investment in automotive sector under ADP (2016-21) and awarded Greenfield status to two more companies M/s Pak China Motors and Topsun Motors.

The total number of companies which have been awarded Greenfield status under ADP 2016-21 has touched double figure and is now 10. In addition, two companies i.e. M/s Dewan Farooq Motors and Ghandhara Nissan Car Plant have been revived and awarded Brownfield status under the Automotive Development Policy 2016-21.

M/s Pak China Motors has signed exclusive Technical Collaboration Agreement with China’s Chongqing Lifan Automobile Co. the company will setup an assembly plant at Karachi with an investment of Rs. 24.25 million to produce Light Commercial Vehicles(LCVs), passenger cars and Specialize Utility Vehicles (SUVs). However, M/s Topsun Motors will setup assembly plant in Multan, the company has signed exclusive cooperation agreement with Chongqing Big S&T Dev Group Ltd & Mianyang Huarui Automotive Co. Ltd. China for the production of LCVs with an initial investment of Rs. 5.43 million.

The growth has shown increasing trend in motorcycle segment as well wherein Engineering Development Board (EDB) has approved manufacturing of 8 × units for motorcycles spare parts manufacturing in June 2018.

Crown Group, one of the most prominent group in motorcycle buinessess in Pakistan has been facilitated by EDB in investment of PKR 378 million. In these projects a total of 544 employees are working under the umbrella of Crown Group including 30 Chinese Engineers/ Supervisors and 514 Local workers.
The company will manufacture motorcycle parts that includes Magnet Plate CD-70+Magnet Plate Star, Clutch Boss, Sprocket Panel, Chain Sprocket, Complete Lever Assembly, Brake Shoe CD-70, Gasket/Seal, Crankshaft, Shock Absorber Front & Rear, Clutch Cable, Throttle Cable, Meter Cable, Brake Cable, Magnet Coil etc. The details of which are as under;

S.No
Organization Name
Products (Motorcycle Parts)
1
Hysen Engineering Works (Pvt) Ltd
Magnet Plate CD-70+Magnet Plate Star, Clutch Boss, Sprocket Panel, Chain Sprocket
2
Three Gold Engineering Works
Complete Lever Assembly
3
Yushi Motors Pakistan (Pvt) Ltd
Brake Shoe CD-70
4
Chengdu Shuangliu Huacheng Seal Pakistan (Pvt) Ltd
Gasket/Seal
5
Hualong Machinery Pakistan (Pvt) Ltd
Crankshaft
6
Zhenlong Pakistan (Pvt) Ltd
Shock Absorber Front & Rear
7
Xinda Control Cable Pakistan (Pvt) Ltd
Clutch Cable, Throttle Cable, Meter Cable, Brake Cable
8
Yuchi Pakistan (Pvt) Ltd
Magnet Coil

With the increasing volumes in motorcycle segment, the investment in manufacturing is increasing. Resultantly, Atlas Group has shown interest in manufacturing of Chains for motorcycles. Such projects will help in reduction of import bill. The automotive industry has always admired the efforts of EDB, the organization whose fate is still undecided due to a unilateral decision taken by previous Government in Cabinet Committee on Energy (CCOE).