The President of the Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI), Wang Zihai said the automobile industry is a fundamental part of the development of roads, highways, and other infrastructure and it has great importance in CPEC-related projects.
“CPEC (China-Pakistan Economic Corridor) projects are strategically important and beneficial for the economies of both countries and Pakistan’s automobile industry is one of the main beneficiaries of CPEC,” Wang noted while talking at a think tank session held at the PCJCCI Secretariat.
As per the details, the China-Pakistan automobile partnership was a win-win choice as new Chinese auto sector entrants in Pakistan would create more opportunities for local customers, Wang added.
China’s Belt and Road project has now been established that has been facilitating Pakistan’s import of automotive parts and completely knocked down (CKD) kits from China at discounted costs.
Because of unemployment in the country, Pakistan had a low labor cost, hence, the country could manufacture Chinese-origin vehicles with little investment, he remarked.
Read more: China’s BYD overtakes Tesla as top seller of electric cars globally
“If sold at economical prices, these vehicles can capture the domestic market,” the PCJCCI president stressed, continuing that because of the high rate of inflation, the government should initiate low-cost vehicle manufacturing for the ease of people.
Meanwhile, PCJCCI Senior Vice President Ehsan Choudhry also shared his opinions and said that CPEC had opened doors for Chinese companies, which were interested in investing in Pakistan’s automobile sector.
Ehsan Choudhry further stated that one of the automobile giants of China, Chery, had launched its new RHD (right-hand drive) strategy in 2019 and chose seven countries as its key potential markets, including Pakistan.
“At present, Chery Automobile products include saloon cars and SUVs. Choosing to manufacture SUV models in Pakistan is based on the fact that the global consumption trend is upgrading from cars to SUV, SUV is more suitable for Pakistan road conditions, and Chinese companies are competitive in the SUV market segment, etc,” he added.