GNL reported its project’s progress file to the
GNL has invested a huge amount of money in the local sector to ensure a high level of localization in the best possible way.
The GNL had also planned to invest
GNL entered the local auto sector of
During October last year, the company indicated uncertainty regarding its future plans for Datsun cars in the country. This is primarily due to the prevailing economic crisis and the sharp depreciation of Pakistani Rupee against the US dollar that brings a high level of uncertainty for an investment of this magnitude. Furthermore, the project related challenges have grown in the past year due to high-interest rates and demand a reevaluation of the project’s sustainability.
The company also pointed out that the localization of some auto parts was potentially not possible in the short-term period due to the lack of the latest technology in the local sector. It had earlier planned to localize as much as 30% of the parts in its first three years. Apart from Datsun Cross, the company also aimed at introducing Datsun Go and Datsun Go Plus in the local sector. Ghandhara Nissan’s production plant is located in the Port Qasim area of
On the other hand,
It is relevant to point out that the current situation of the local auto market is not encouraging as the sales of even the existing automakers have declined by as high as 68% in the current fiscal year 2019-20. It’s largely due to the high exchange rate, increased additional customs duty on the import of raw material, and the imposition of 2.5-7.5% Federal Excise Duty (FED) by the government on locally produced cars.
All these factors combined and resulted in a massive hike in car prices and decreased the buying power of the consumers. In such circumstances, it’s much more difficult for the new entrants to succeed or even survive in the local auto sector.
© Pakistan Press International, source