Ghandhara Nissan may pull out from investing in the country

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.