As the year is about to end, we bring up the latest news from the automotive circle which is booming with the news of new entrants in the market combined with the possibility of substantial foreign investments which is bound to strengthen the national economy. CarFirst comes up with the latest developments from the last month of November:
Pakistan welcomes JW Forland Automobile Manufacturing Plant
In a move that is bound to decrease the country’s external deficit, the commencement of the first ever vehicle manufacturing plant in Pakistan has sparked positive waves within the country’s automotive circle. The plant is a joint venture between Changsha Foton Vehicle Technology from China and JW SEZ group from Pakistan. The launching ceremony of the plant was held at Islamabad on 30th November, 2018. On the whole, $900 million dollars are expected to be invested in the establishment of the plant which is in the outskirts of Lahore while this has made JW-FORLAND, the first Pakistani company to have a 50 percent partnership deal with a Chinese company in the automotive sector.
Sudden US Dollar price hike likely to increase the Vehicle Prices
The sudden surge in the US Dollar price has not gone down well within the automotive circle as it is widely expected that the move is going to come up with an increase in car prices which has already been done several times in the current fiscal year. Till now, the three automotive giants have been tight lipped on the current issue but effective from January 2019, another price hike is on the cards unless the US Dollar witnesses a downfall which remains highly unlikely.
Pak Suzuki to expand its Operations in Pakistan
Pak Suzuki has decided to invest 450 million dollars in Pakistan to set up a second vehicle assembly plant in Pakistan. The 80 acres of land acquired for the plant is right next to the current plant and with it, the company plans to manufacture 100,000 more vehicles every year. The move is line with the company’s vision of being the only company in Pakistan that produces 2 million vehicles per year.
Honda Atlas witnesses a 36% Profit drop
Keeping into consideration the notice sent to Pakistan stock exchange pertaining to recently culminated quarter in September 2018, Honda Atlas has reported a decline in the net profits to 1.03 billion PKR which is 36% less as compared to last year. One of the main reasons for the profit decline is expected to be a sudden price hike of the vehicles due to dollar rise which has increased the net sales to 13% but has adversely affected the gross profit due to high cost of sales.
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