KARACHI, Pakistan – Nissan Motor Co., Ltd. is entering the Pakistan market through a manufacturing and licensing agreement with automotive partner Ghandhara Nissan Ltd. for local production of Datsun models.
The agreement also covers distribution, providing access to a market where demand for new vehicles has grown to more than 200,000 units a year.
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.
“This entrance to the Pakistan automotive market represents a significant step in the ongoing development of local manufacturing infrastructure and economic activity,” said Peyman Kargar, Nissan senior vice president. “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,” Kargar added.
Nissan’s entry will provide Pakistani customers with a fresh and desirable lineup designed and built with the most modern Japanese engineering.
It will also provide a significant boost to the automotive industry, which already accounts for about 4% of Pakistan’s gross domestic product. Ghandhara will invest 4.5 billion Pakistani rupees (about $41 million) over the first four years. The project and the development of a retail network will create more than 1,800 jobs.
Nissan and Ghandhara will work together to develop Ghandhara’s facilities in Karachi’s Port Qasim into a world-class manufacturing plant. The partners have a long-standing relationship, bringing a wealth of local knowledge and experience. The project has qualified for brownfield category status under the Government of Pakistan’s Automotive Development Policy.
“This agreement will introduce world-class facilities and the best of Japanese engineering technologies,” said Ahmed Kuli Khan Khattak, CEO of Ghandhara. “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.”
About Nissan Motor Co., Ltd.
Nissan is a global full-line vehicle manufacturer that sells more than 60 models under the Nissan, INFINITI and Datsun brands. In fiscal year 2016, the company sold 5.63 million vehicles globally, generating revenues of 11.72 trillion yen. In fiscal 2017, the company embarked on Nissan M.O.V.E. to 2022, a six-year plan targeting a 30% increase in annualized revenues to 16.5 trillion yen by the end of fiscal 2022, along with cumulative free cash flow of 2.5 trillion yen. As part of Nissan M.O.V.E. to 2022, the company plans to extend its leadership in electric vehicles, symbolized by the world's best-selling all-electric vehicle in history, the Nissan LEAF. Nissan’s global headquarters in Yokohama, Japan, manages operations in six regions: Asia & Oceania; Africa, the Middle East & India; China; Europe; Latin America; and North America. Nissan has a global workforce of 247,500 and has been partnered with French manufacturer Renault since 1999. In 2016, Nissan acquired a 34% stake in Mitsubishi Motors. Renault-Nissan-Mitsubishi is today the world’s largest automotive partnership, with combined sales of more than 10.6 million vehicles in calendar year 2017.
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About Ghandhara Nissan Ltd.
Ghandhara Nissan Limited (GHNL), established in 1981, is part of the Bibojee Group of companies. The group is an industrial conglomerate with an extensive portfolio of businesses comprising cotton spinning mills, a woolen mill, automobile assembling plants, a general insurance company, Pakistan’s largest tire manufacturing company and a construction company. GHNL provides a complete range of vehicles and services that deliver superior values to all stakeholders. Having two independent assembling facilities each for commercial and passenger vehicles, it is the country’s only automobile company with the capability of assembling a complete and diversified range of products. The company is committed to delivering high-quality products ensuring customer satisfaction while contributing to the economic growth of Pakistan.
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Media contacts
Roland Buerk
Nissan Senior Director, Communications – Africa, Middle East, India
Phone: +971-564175296
roland@nissan-me.ae