Nissan to Begin Datsun Production in Pakistan with Ghandhara

Nissan Motor Corporation, along with Ghandhara Nissan Limited hosted a press conference in Karachi today to officially announce its entry in Pakistan. Senior management of both the companies were present at the event to highlight their vision for Pakistan market for coming years.

The manufacturing and licensing agreement between Nissan and Ghandhara, will see the local production of Datsun models in Pakistan. At this stage however, they denied commenting on the models that are to be launched in the country.

The move is part of Nissan’s strategy to engage with emerging automotive markets around the world, bringing brands and products tailored to meet rising consumer demand. Sales of the first locally built vehicles are expected to begin in Pakistan within the 2019 fiscal year.

Related: Sazgar Awarded Greenfield Status to Assemble & Manufacture Vehicles in Pakistan

Peyman Kargar, Nissan’s senior vice president, said:

This entrance to the Pakistan automotive market represents a significant step in the ongoing development of local manufacturing infrastructure and economic activity. We are confident that, with the close collaboration and support of the Pakistani government, this will deliver sustainable benefits for the national economy, customers, partners and Nissan. Together with Ghandhara, we’ll be working actively with suppliers to localize and exchange technology and skills, which will provide a lasting benefit to the emerging local component industry.

Ghandhara Nissan plans to increase its annual production capacity and would further invest PKR 1.5 to 2.0 billion if they receive positive market response. Ghandhara expects to re-initiate operations in Pakistan with up to 20% localization which will be increased over the years.

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Ahmed Kuli Khan Khattak, CEO of Ghandhara said:

This agreement will introduce world-class facilities and the best of Japanese engineering technologies. By localizing the manufacture of parts and components and boosting development in the auto supplier industry, it will provide Pakistan with technical assistance and promote partnerships with Japan. Customers in Pakistan will benefit from more choice and enjoy engaging driving experiences with vehicles and modern features that are ideally suited to the country.

Ghandhara is not going to bring vehicles as CBU due to very heavy taxes. However in future, they might consider to producing hybrid vehicles locally.

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