KARACHI: Ghandhara Nissan Ltd (GNL) is reviewing its plans to assemble Datsun vehicles in the country as the company feels that under the prevalent volatile economic conditions and exchange rates, it “cannot afford to go for a project of this magnitude, especially with that level of uncertainty,” reported Dawn.
“Apart from project-related challenges, the local economic conditions, particularly the automobile market situation have compelled us to revisit the project’s sustainability,” a GNL official was quoted as saying in the report.
“We have to re-program the project timeline citing unsatisfactory economic conditions, high interest rates and vulnerable exchange rate,” he added.
GNL had earlier planned to invest Rs6.5 billion in the next four years to launch 1,200cc Datsun Cross by the 2020 and roll out 1,200cc Datsun Go and Datsun Go Plus at the plant located in the Port Qasim area.
The official said that rupee devaluation against the dollar in the last year and a half has changed the financial feasibility of the project while additional customs duty, federal excise duty and high interest rates did rest of the damage.
The market situation is not conducive for new entrants as existing automakers are already facing crisis owing to around 50 per cent fall in sales.
GN is a poorly run company which has tried to enter the car market before and failed. And now they are making losses on trucks as well.
Yes, we have economic challanges, but let’s not blame the economy for bad management of the company.
Other companies are making huge profits but this company is just criticizing our country’s economic conditions.
They may have made great profits in the past but in recent months auto makers have reported 50% less sales as the last paragraph points out. The macroeconomic adjustment has hit them hard. There is definitely no room for new entrants in this small market of ours.
Government should allow import of used cars if it wants to give automakers some competition. Govt. needs to end this fantasy of a Pakistani auto industry. We are only capable of assembling cars and no more.
Wanker you’ve reflected the reflections of accredited PAMA the trade body. Which should be called Pakistan Automobile Assemblers Association. PAMA has no accreditation of International body as OICA etc. Pakistan has some strengths reference to China/CPEC bilateral treaty. China will have to purchase cars/autos if it forms a JV for assembly in Pakistan and exported to China with international QC. Companies as Indus Motors may qualify for hybrid, EV Corolla to China as both China and Pakistan may benefit. The family owned Gandhara Nissan may produce Nissan Leaf which has a good market share in Nepal, and Rest of the World. If Nissan is willing to invest for assembly JV this is an opportunity to sell Gandhara Nissan shares to Nissan for Leaf and other EV products to China and the region with bilateral treaty with the Ministerial protocol. Pakistan can re-furbish Toyota Prius to solar for domestic, and export markets. This project is under trail in Japan and Pakistan with some cars which was sent from Japan. This could be an opportunity for the solarisation of buses, rickshaw, motor cycle, cars etc. Today is the time of struggle only the fittest will survive. Toyota Corolla bumper crop is over with premium price for all Corolla cars in Pakistan
market is too small. pakistanis are too poor to afford vehicles. economic development has never been a priority for the govt. only fighting india is a priority.
per capita gdp has actually shrunk because it was all based on an overvalued rupee.
GNL is managed by a retired general who ran away from war in east Pakistan and arrived in Burma now Myanmar . Generals are trained to kill not run businesses or rule Pakistan
GNL do not have the guts to take any risk. They made their money during when their family was in the military.