It has been recently reported that Al-Haj Faw Motors (Private) Limited, a collaboration between Faw China and Al-Haj Motors (a commercial importer of heavy vehicles), has started assembling Faw V2, a 1,300cc hatchback, at its assembly plant in Karachi.
Pakistan’s automobile market is currently dominated by three Japanese carmakers and some experts believe that it will be difficult for the company to create demand for Chinese cars in the country.
On the contrary, the company’s decision to initiate its assembly operations in the country is being perceived as a smart move by many analysts, as it will entice other automakers to set-up their assembly operations in the country.
The Chinese carmaker has been importing Completely Built Units (CBU) of V2 for the past two years to analyze the response of Pakistani market. Well, it seems that the company is satisfied with the response as it has decided to assemble the car locally in a bid to compete with the well-established Japanese auto manufacturers.
“We want to become the export base of Faw for export of cars to Southeast Asia and African markets,” Al-Haj Faw Motors Managing Director Bilal Afridi said on Saturday.
The company’s initial plan is to produce 300 units of Faw V2 for a few months and then boost its production level to 500 units by the end of the current fiscal year. As of now, the company has employed approximately 600 workers, and has capacity to manufacture 10,000 units per month, which will be increased to 15,000 units by 2020.
For those who are wondering, Faw V2 is currently available for PKR 1.069 million in Pakistan. According to the company officials, they have increased the price of vehicle by only PKR 20,000 in the past two years in order to present it as an attractive product and to acquire a competitive edge over its Japanese competitors. However, the company has to do much more than offering its car at lower price to compete with its Japanese counterparts.
We believe that this is an amazing initiative as it will likely entice other car manufacturers to set-up their assembly plants in the country. In any case, we’ll continue to track the story to keep our readers updated.