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Sunday, October 2, 2022

JAC Motors, FAW, Dongfeng to increase Investment in Pakistan to benefit from CPEC Free Zone

Chinese automakers can benefit from tax breaks under China-Pakistan Economic Corridor (CPEC) free zone, which is a strong incentive to create or enter the auto sector in Pakistan. We can see more Chinese cars in Pakistan. The free zone in Gwadar is the key draw for such Chinese investors. JAC Motors, FAW, Dongfeng, and and some other big names are among the automakers who have expressed interest in investing in Pakistan. Previously many Chinese manufacturers are experiencing a great success in Pakistan Auto Market.

Pakistan to enhance its Automotive production to 1 MILLION units by 2027.

Pakistan, the world’s fifth largest country, offers investors possibilities to engage in a variety of economic areas, including the automobile industry. Pakistan had few brands in the local market and their monopoly was making it difficult for other manufacturers to enter the market but the new Automobile policy and CPEC incentive have given a good push to the global manufacturers.

China is a rising global power with a long history of strong ties to Pakistan. The China-Pakistan Economic Corridor has already demonstrated close economic collaboration between the two nations in the region (CPEC).

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Pakistan have signed a free trade agreement (FTA) with China, which will help both countries promote free trade and investment. The two countries have recently begun fresh cooperation in the sphere of vehicle production, which is a win-win situation for both the countries. China, which possesses the world’s largest vehicle market, has grown in importance in the automobile manufacturing industry over the years. We can see more Chinese cars in Pakistan.

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The vehicle industry is inextricably linked to a country’s road networks, which include highways and motorways. The China-Pakistan Economic Corridor (CPEC) plan has made it possible to import vehicle parts. Pakistan has a plentiful supply of low-cost labor, and Chinese original equipment manufacturers (OEMs) in this industry can set up shop in the country. Long-term tax breaks have already been granted to Chinese investors in the country.

Cooperation between China and Pakistan in the automobile sector will go a long way toward establishing auto industry clusters that will ultimately benefit the economy. In future we will see more Chinese cars in Pakistan.

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