In Pakistan, one of the most well-known auto brands of South Korea, Hyundai along with the Al-Haj group have decided to work together, with the intention to bring Heavy Commercial Vehicles (HCV). In this regard, the company has decided to make Luxury buses and trucks, as main and first proposal, with an estimated financing of 4 billion rupees. Within a year, the company has decided to start the production process of vehicles, whereas the company has owned nearly 30 acres of land in Karachi. At first instant, Al-Haj private group will invest an estimated amount of 1.5 billion then Hyundai will invest further in 2019 within the production plant of vehicles.
Within the following years Hyundai will make more investment in making light duty trucks along with its production of universe luxury busses. Not only this, within the production process of vehicles, automakers from South Korea have also decided to make passenger and cargo handling vehicles. The chairman of Hyundai has claimed that the company has its trust within Al-Haj group and it will be beneficial for both groups to gain profit and growth within the markets of Pakistan.
Competition Heats up:
In Pakistan, presently, there are almost four truck assemblers from China, with the dominant share of 40% within the Pakistani markets within merely one decade. While, on the other hand, rest share of the market is in the hand of Japanese assemblers, as they are working within the markets of Pakistan for many decades. However, over the competition to win the market share, Chinese automakers have set cheap prices than the Japanese’s prices of auto, whereas European brand Volvo is high more than Chinese and Japanese brands.
About Al-Haj Group:
In Pakistan, since 1960, Al-Haj group is working and assembling Chinese passenger vehicles and trucks. Bilal Khan Afridi, CEO of Al-Haj group claims that Hyundai has accepted partnership because of the history of Al-Haj group with heavy duty vehicles. Both firms are keen to work for the China-Pakistan Economic Corridor (CPEC) with the help of the production of heavy duty vehicles for both public and cargo as well. From 2015-16, in Pakistan, nearly 6736 buses and trucks have been produced on record, showing the 40% share of Chinese within the market of Pakistan.