Al-Haj FAW Motors officially inaugurated its automobile assembly plant on 10 November, set up with an investment of PKR1bn (USD10.3m) in Karachi, reports the Financial Daily. Established in early 2012, the plant is capable of producing trucks, prime movers, light commercial vehicles, and passenger cars. Al-Haj FAW Motors is a joint venture (JV) between First Automobile Works (FAW) Motors, a Chinese vehicle-maker, and Al-Haj Motors, an importer of heavy vehicles in Pakistan. Inaugurating the assembly plant, Pakistani prime minister Raja Pervez Ashraf said the alliance is key to the economic prosperity and development of Pakistan.
Significance: The company is already assembling two 1,000-cc models at the plant since June 2012, and has sold a few hundred pick-ups assembled at the plant over last few months. With the formal launch, FAW Motors aims to significantly increase its market share in Pakistan in trucks and pick-ups. It is targeting the launch of new vehicles and passenger cars of 1,000-1,500cc within the next few years. The company also plans to produce 6,000 trucks and 12,000 light vehicles every year. However, the company's ambitions may be tempered by the economics of demand and supply. The truck market has slowed considerably over the last few years in Pakistan, while passenger vehicle sales are challenged by relatively inexpensive new and used car imports.
