Ghandhara Nissan will most likely resume car production in Pakistan. The company will get government permission to keep producing cars in the country. The Board of Investment (BOI) and the Engineering Development Board (EDB) have decided to treat Nissan’s plan as a Brownfield investment. Brownfield investment means that Ghandhara Nissan will import auto part at cheap rates of customs duty for a timeframe of three years.
Those parts not available in Pakistan will be imported at 10% customs duty, and those produced in Pakistan will be given at 25% duty. Furthermore, for three years Nissan will be allowed to import all parts local and non-local at the given custom duty, to manufacture vehicles like trucks, buses etc.
In 1981 Ghandhara Nissan launched in Pakistan as a private limited company and in 1992 it was made into a public limited company. In the year 1996 it began producing vehicles but after 14 years it stopped producing them and since 2010 its plant has become inactive.
Then in 2016 Ghandhara Nissan delegation led by CEO Ahmed Kuli Khan Khattak had a meeting with BOI and discussed the chance of the revival of the company under the new incentive-filled auto policy 2016.
They told the BOI secretary on how the company will start manufacturing Datsun cars in Pakistan by investing Rs4.5 billion in initial four years. The project will not just introduce new vehicles in Pakistan but also create around 2000 jobs.
There was an issue relating to getting the Brownfield status for Ghandhara Nissan but the company is ready to invest $200 million to revive its plant and start manufacturing vehicles in Pakistan.
In Pakistan, today the competition between automakers is way high compared to past. Other than the established companies like Toyota, Suzuki and Honda new international automakers are ready to start vehicle production in the country including Kia, Renault, Volkswagen, and Hyundai. So Ghandhara Nissan will face tough competition now.