ISLAMABAD-Gandhara Nissan Limited on Wednesday intended to restart its production in Pakistan under new Auto Development policy by making huge investment by starting production of “Datsun” by 2017.
Minister of State Dr. Mifta Ismail met with the delegation of Nissan Japan, Renault France, Al Futtaim Group UAE and Gandhara Nissan Limited. They discussed the timeline of commencement of vehicle production. Gandhara Nissan Limited is a group of company of Bibojee Services Pvt limited. They are pioneer in manufacturing automobiles. Renault is a French Multinational automobile manufacturer established in 1899. The company produces a range of cars and vans. Renault became the 7th largest automaker in the world in 2013. Renault has been part of Volvo trucks since 2001. And it is also known for motor sport, particularly rallying and Formula 1.
Gandhara Nissan Limited has an updated assembly plant for passenger car, where they assembled Nissan Cars since 1996-1999 and then again in 2007-2009. This plant is fully equipped to produce passenger car and light commercial vehicles, but lying idle since 2010 due to non availability of the product. According to new Auto Policy they fall in category B (Brown Field project). The delegation intended to restart the production as new policy extends duty benefits and want to make huge investment in expansion of plant. They also want to start production of “Datsun” here by 2017.
Minister of State said that we would like to have as many manufacturers as possible in Pakistan by ensuring protection to our local manufacturers. Pakistan has a 5th largest Middle Class, and by 2025 we will have 100 million people who would fall into this category so it’s going to be a great opportunity for the investors to invest in consumer goods and services here. We would love to have SUVs here depending upon the market demand. “I am pro market regulator as it gives immense opportunities for a healthy competition and efficiency”, said the Minister. technicalities and formalities regarding the project has been discussed in the meeting. Minister of State assured the delegation that they would be informed about the decision of the government in couple of weeks after consulting the Finance Minister and Federal Board of Revenue on the matter.
Auto Development policy (2016-2021) envisages two categories of New Investment with different incentives. Category A is green field investment, and it is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles which have not been made before in Pakistan. Category B is brown Field investment, is defined as revival of an existing assembly and manufacturing facilities. Category A shall be entitled to duty free import of plant and machinery for setting up the assembly on a one time basis, concessional rate of custom duty at 10% on non localized parts and 25% on localized parts for five years for the manufacturing of cars and LCV. Imports of all parts at prevailing customs duty applicable to non localized parts for manufacturing of trucks, buses and prime movers for a period of three years etc.
Category B shall be entitled to import of non localized parts at 10% of custom duty and localized parts at 25% duty for an period of three years for cars and LCVs. Imports of all parts at prevailing customs duty applicable to non localized parts for manufacturing of trucks, buses and prime movers for a period of three years etc. Fiscal incentives contained in ADP shall come into effect from July, 2016.