Prominent Pakistani auto rickshaw manufacturer Sazgar Engineering Works Ltd. expects commercial production of ‘HAVAL’ brand of China’s Great Wall Motors to start before June 30, 2022.
In a disclosure to Pakistan Stock Exchange last week, Sazgar reported that it had obtained a ‘greenfield’ status from Pakistan’s Ministry of Industries and Production for setting up assembly and manufacturing plant of commercial and passenger vehicles of GWM HAVAL brand.
Also, the government has approved Great Wall Motors as the second principal of the assembly and manufacturing plant, the Lahore-based firm said.
In an earlier stock filing, the company said that it had also started importing and marketing completely built-up (CUB) vehicles under ‘HAVAL’ brand name and had already started booking these vehicles from March 18, 2021.
The company had planned to launch HAVAL before March 31, 2021. However, it said that things did not go as per their plans due to COVID-19, which delayed the project.
Sazgar has also signed an agreement with one of China’s largest automobile manufacturers, Beijing Automotive Industry Corp, to launch as many as 4 BAIC models in Pakistan. This project has also hit snags due to the pandemic. However, in the fresh disclosure, the firm said that it will launch HAVAL models together with the BAIC models.
Sazgar obtained greenfield status under Automotive Development Policy 2016-21. Under the policy, the government has provided multiple incentives to investors for introducing new automobile brands in Pakistan. Initially, the incentives were meant for automotive brands having been rolled out before June 30, 2021. However, the government has been granting relaxation to local investors who missed the deadline but have made substantial progress in materialising their projects. Sazgar is also one such case.
In October 2020, Sazgar said that it had utilised Rs300 million on machinery imports for its four-wheeler project. The sum was spent out of the Rs700 million the firm had raised from its existing investors through issuance of right shares.
Source: China Economic NetAutotrader | Boat Trader | Trader | RV Trader