Chinese firm to establish electric vehicle plant in Punjab

China’s largest automobile manufacturer, SIAC Motor Corporation Limited is all set to join Pakistan’s first private sector SEZ in Raiwind, Pakistan. JW SEZ, China-Pakistan SEZ are planning an estimated FDI of around 663 million PKR and local investment of 637 million PKR.

In collaboration with its local partners, they’re trying to start manufacturing electric vehicles currently in Pakistan. However, it is still not clear whether the special economic zone will be manufacturing vehicles centered only for the domestic market or also for export.

Most of the companies are already In Sync with the special economic zones under some terms and conditions to export goods. MG Pakistan is one of them and is currently a joint venture between JW-SEZ and SMIL which is a subsidiary under SAIC Motor corporation limited.

SIAC is the Chinese government’s company located in Shanghai. it is among the top automotive design and manufacturing companies in the world. it is also ranked as the seventh largest auto developer company in the world and the largest so far in China.

They also bought Morris Garages which is a prestigious British, in 2006. it is the same name that there are now using to market their automobiles across the world. Initially, JW-SEZ signed up a contract with Changsha Foton Motors to organize EVsJW Forland so that they can manufacture trucks. The initial investment they made was about $150 million which the company used to build the manufacturing plant.

The vehicles they have manufactured so far are trucks, cargo vehicles, and minivans, and so far about 500 people are believed to have been employed for phase one production, and production expected in round one is around 30,000 vehicles.

Further investments of around $300 million are expected during phases 2-3 and over 100,000 units of electric vehicles are expected to be manufactured per year. Currently, the production plant is around 50 acres, they are intended to expand it to an additional 100 acres. To ensure the progress and carry on the production, the company is also planning to employ more than 3500 new workers

The new Chinese brand has received an overwhelming response after they have entered the country. Especially they are three major companies like Toyota, Honda, Suzuki, and they are already having a large proportion of shares and domestic auto market sales for decades and lack any sort of competition

Chinese sports utility vehicles are already the cheapest in the market. offering better quality features at the same time. Currently, there are almost 10 cars for every thousand people in Pakistan. This is one of the few lowest ratios in the world and is more appealing to have a high potential of growth. Introducing the 30-40 million young people to the economically active workforce in the next one or two decades will provide stimulus to the automotive industry and will help more efficiently in the growth of the country.

Add electric vehicles have already gained enough popularity and are still growing in the country. The market seems like an ideal place for further investments and for growth.

Impending challenges:

The charging station for smaller vehicles should be 15 kW/ 72-200V and 10 kW/ 230V. Installing charging stations across every city and town in such a business country will require massive investments and lands.

Keeping other challenges aside, finding land in already congested cities will surely be a difficult task to accomplish. While a charge station requires 3.2 million PKR to install on average.

The charging stations of BMW electric vehicles have already started operating in Lahore, Karachi, and Islamabad. BMW also launched the public EV charging station at Dolmen Mall Karachi and emporium mall Lahore.

Various petroleum companies have shared the ground with automakers and are planning to convert their petrol station to charging stations.

China’s largest automobile manufacturer, SIAC Motor Corporation Limited is all set to join Pakistan’s first private sector SEZ in Raiwind, Pakistan. JW SEZ, China-Pakistan SEZ are planning an estimated FDI of around 663 million PKR and local investment of 637 million PKR.

In collaboration with its local partners, they’re trying to start manufacturing electric vehicles currently in Pakistan. However, it is still not clear whether the special economic zone will be manufacturing vehicles centered only for the domestic market or also for export.

Most of the companies are already In Sync with the special economic zones under some terms and conditions to export goods. MG Pakistan is one of them and is currently a joint venture between JW-SEZ and SMIL which is a subsidiary under SAIC Motor corporation limited.

SIAC is the Chinese government’s company located in Shanghai. it is among the top automotive design and manufacturing companies in the world. it is also ranked as the seventh largest auto developer company in the world and the largest so far in China.

They also bought Morris Garages which is a prestigious British, in 2006. it is the same name that there are now using to market their automobiles across the world. Initially, JW-SEZ signed up a contract with Changsha Foton Motors to organize EVsJW Forland so that they can manufacture trucks. The initial investment they made was about $150 million which the company used to build the manufacturing plant.

The vehicles they have manufactured so far are trucks, cargo vehicles, and minivans, and so far about 500 people are believed to have been employed for phase one production, and production expected in round one is around 30,000 vehicles.

Further investments of around $300 million are expected during phases 2-3 and over 100,000 units of electric vehicles are expected to be manufactured per year. Currently, the production plant is around 50 acres, they are intended to expand it to an additional 100 acres. To ensure the progress and carry on the production, the company is also planning to employ more than 3500 new workers

The new Chinese brand has received an overwhelming response after they have entered the country. Especially they are three major companies like Toyota, Honda, Suzuki, and they are already having a large proportion of shares and domestic auto market sales for decades and lack any sort of competition

Chinese sports utility vehicles are already the cheapest in the market. offering better quality features at the same time. Currently, there are almost 10 cars for every thousand people in Pakistan. This is one of the few lowest ratios in the world and is more appealing to have a high potential of growth. Introducing the 30-40 million young people to the economically active workforce in the next one or two decades will provide stimulus to the automotive industry and will help more efficiently in the growth of the country.

Add electric vehicles have already gained enough popularity and are still growing in the country. The market seems like an ideal place for further investments and for growth.

Impending challenges:

The charging station for smaller vehicles should be 15 kW/ 72-200V and 10 kW/ 230V. Installing charging stations across every city and town in such a business country will require massive investments and lands.

Keeping other challenges aside, finding land in already congested cities will surely be a difficult task to accomplish. While a charge station requires 3.2 million PKR to install on average.

The charging stations of BMW electric vehicles have already started operating in Lahore, Karachi, and Islamabad. BMW also launched the public EV charging station at Dolmen Mall Karachi and emporium mall Lahore.

Various petroleum companies have shared the ground with automakers and are planning to convert their petrol station to charging stations.

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