According to a material information notice released on the bourse, Ghandhara Nissan Industries Limited has announced that the company has been awarded “Category-B Brownfield Investment Status” by the Ministry of Industries and Production under the Automotive Development Policy 2016 – 21.
The award will allow Ghandhara Nissan to revive an existing assemble and facility for manufacturing of Datsun Passenger Cars.
Pakistan’s auto industry is going through a growth phase after decades of oligopolistic control by three Japanese auto manufacturers (Suzuki, Toyota, and Honda). With the approval of Automotive Development Policy 2016 – 21, the door has opened for new entrants to compete in the underserved auto market of Pakistan. Renault, Kia, Hyundai, Audi and now Datsun have all showed keen interest to setup assembly plants in Pakistan.
Furthermore, with the ease of car financing the boom is set to continue in the coming few years. During February 2018, private sector credit for car financing reached a sum of Rupees 181.344 billion, registering an year on year increase of 33.9 percent.
The said notice can be accessed here.