Hyundai to Set up CV Assembly Plant in Parkistan
www.chinatrucks.com: Al-Haj Group in partnership with Hyundai Motor Company (HMC) has decided to assemble different truck variants and luxury buses in Pakistan at an expected investments of Rs4 billion.
The company has already purchased 30 acres of land outside Karachi as it aims to start production in the next 12 months.
Truck assemblers in Pakistan say that CPEC is expected to generate huge demand for trucks and buses in the country
In Phase 1, Al-Haj Hyundai (Pvt) Limited, a separate company, will initially invest Rs1.5 billion through its own resources.
Sazgar to venture into LCV, passenger car manufacturing
However, if the two partners agree to move forward, Hyundai may invest in Phase 2 that is expected to start in 2019. Al-Haj Group has a market presence since 1960 and is currently assembling Chinese trucks and passenger cars.
“Hyundai had so many options to partner in Pakistan, but we believe they chose us because of our experience in the heavy vehicles’ market,” Al-Haj Hyundai CEO Bilal Khan Afridi said while talking to reporters on Thursday.
Afridi said that his company is aiming to tap the growth in heavy vehicles in the coming years, as the China-Pakistan Economic Corridor (CPEC) projects gain speed.
The company will set up a Green-field project – completely new infrastructure – with an aim to take the advantage of tax benefits the government provided in the new Automotive Development Policy (ADP) 2016-2021.
After a gap of over seven years, sales of trucks and buses have rebounded strongly due to relative improvement in security and macroeconomic stability in the country. Pakistan produced a record 6,736 units of trucks and buses in fiscal year 2015-16.
Al-Haj Hyundai will initially introduce a heavy duty truck Hyundai XCIENT with different variants and Hyundai UNIVERSE luxury buses for inter-city travel. It will also launch Hyundai MIGHTY medium and light duty trucks. Later on, the company also plans to introduce various other products of Hyundai in Cargo and passenger handling segments.
Hyundai Global Motors Co Ltd Chairman Kyung Sik said that his company is confident that its partnership with Al-Haj Group will help both players because Pakistan is a big market with a growing population.
Current market
There are now four Chinese truck assemblers in Pakistan. Chinese truck assemblers claim that they have already grabbed up to 40% market share in a short period of 10 years while the rest is in the hands of well-established Japanese players who have historically dominated.
The prices of Chinese trucks are in the lowest band. For instance, if a Chinese truck is available in Rs7.8 million it can go up to Rs12.6 million in the Japanese range. Price of a high-end European brand like Volvo goes up to Rs16.5 million, partly because they are not assembled in Pakistan.
Pak Suzuki unveils 1,000cc Cultus
Al-Haj Hyundai officials say they are confident that they would grab the market share of both the Chinese and Japanese. The prices of Hyundai trucks will be higher than Chinese brands but at least 10% to 15% cheaper than the Japanese ones.
Industry officials say German truck maker MAN SE is also setting up a plant in Pakistan.
Truck assemblers in Pakistan say that CPEC is expected to generate huge demand for trucks and buses in Pakistan. However, much to the satisfaction of local players the demand is growing even before the launch of the CPEC projects thus, creating opportunities for all companies from mid-tier to high-end categories.
Views:0
- Hyundai and IVECO Present the First Fuel Cell Large Van at IAA 2022-09-20
- Hyundai Motor and Iveco Group Sign MOU to Explore Future Collaboration 2022-03-09
- Hyundai Reveals World’s First Hydrogen Fuel Cell Heavy-duty Truck at CIIE 2020-11-06
- Hyundai Targets 15% of European Hydrogen Truck Market by 2030 2020-07-24
- Hyundai Wins 2020 Truck Innovation Award 2019-12-19
- Hyundai Showcases NEPTUNE Fuel Cell Truck Concept at CIIE 2019-11-14
- Hyundai Motor Company and Cummins to Collaborate on Hydrogen Fuel Cell Tech 2019-09-29
- Sichuan Hyundai Launches New Version of Mighty Light Truck 2019-08-19
- WABCO Signs Deal with Hyundai to Supply Advanced Techs for New Medium Trucks 2018-11-12
- Hyundai Motor Cuts Truck Production to Cope with Falling Korea's Demand 2018-11-01
Submit Your Requirements, We Are Always At Your Service.
- World’s First All-electric Scania Car Transporter Goes into Service
- China’s First Mining Specialized Remote Sensing Satellite Launched
- SINOTRUK Delivers Full Year 2022 Results, Heavy Truck Sales Down 52.50%
- FOTON and Cummins Team up to Build a New Engine Plant in Thailand
- SANY Awarded as 2022 Forbes China TOP 50 Sustainable DEV Industrial Enterprises
- Daimler Trucks and Buses Signs Deal with XCMG Fire Fighting
- FAW Jiefang Sichuan Branch Was Officially Established
- Bus & Truck Expo Set to be Held in May 2023
- Yutong, SCG Signed MoU for Green Mining in Thailand
- CAT Displays Its First Battery Electric Large Mining Truck
- Half Year Review of Commercial Vehicle Sales
- China Exported 63,000 Trucks in May, Up 33% YoY
- Top 10 Best-selling Battery-swapping Heavy Trucks in China in April
- China Exported 158,000 Trucks in Q1, Up 41% YoY
- China’s Truck Exports Grew by 43.8% YoY to 46600 Units in Feb., 2023
- China’s Heavy Truck Sales Rising 29% YOY to 77200 in Feb
- China Exports 567,000 Trucks in 2022, Hitting a New High in a Decade
- China’s Pickup Exports Jumped 65% YOY in 2022
- China's Truck Exports Grew by 42% YOY to 53,000 Units in November
- Heavy Truck Sales in China Fell by 9% YoY to 46000 Units in Nov.