Eight years after Ghandhara Nissan halted its operations in Pakistan, the auto company is looking towards resuming the production of cars in the country.
The Board of Investment (BOI) and the Engineering Development Board (EDB) has already agreed to treat the company’s proposal as Brownfield investment and thus it is likely to get the final approval from the government.
Brownfield investment is defined as the revival of an existing car assembly or manufacturing facility that has been inactive since before July 2013 given that the company is not producing any vehicles since that date. Under the brownfield investment category, Gandhara Nissan will be able to import auto parts at lower customs duty for the period of three years.
The auto company will be allowed to import the parts that are not produced in Pakistan at 10% customs duty while the parts that are produced in Pakistan can be imported at 25% customs duty.
Ghandhara Nissan started off in 1981 as a private limited company in Pakistan and was converted to public limited in 1992.
It started car production in 1996 but after 14 years halted its operation in the country in 2010
The company was previously in talks with Renault, the European automaker but due to commercial reasons, the potential partnership fell through. Now Renault is coming with Al-Futtaim group which is a leading family-owned group in the UAE, whose subsidiary, Al-Ghazi in Pakistan manufactures tractors.
Looking at the new Auto Development Policy 2016, the company is committed to resuming its operations in the country and manufacture Datsun cars in Pakistan. In October 2017, the delegation of Gandhara Nissan met the BOI.
It plans to invest Rs. 4.5 billion in the first four years of its operations
Japan’s Nissan Motor Company will provide technical assistance to Ghandhara Nissan where the latter will also purchase auto parts from the former. The company’s new project is expected to create around 1810 jobs in the country.