It will ensure a healthy competition in the industry as well as will meet the logistics requirements of China Pakistan Economic Corridor (CPEC).
May 6, 2018 (BE2C2) — The National Logistics Cell (NLC) has signed a memorandum of understanding (MoU) with Daimler AG for local assembly and production of Mercedes‐Benz trucks in Pakistan with the aim to become a major player in harnessing logistics and connectivity opportunities of upcoming China Pakistan Economic Corridor.Mercedez
In a statement issued on Saturday, NLC said the local assembly of Mercedes‐Benz trucks will mark a major shift in the logistics and transportation industry’s preference towards European manufacturers who offer technologically advanced products that combine superior performance, environment friendliness, reliability and road safety.
NLC Director General Major General Mushtaq Faisal, Pak NLC Motors Chief Executive Officer Zia Ahmed, Mercedes‐Benz Special Trucks Head of Executive Committee Klaus Fischinger and Head of Sales Dr Ralf Forcher signed the MoU.
Also present at the signing ceremony were Shahnawaz Limited Director and General Manager Naseem Shaikh and Ahmed Naeem.
General Faisal termed the MoU a historic moment for Pakistan’s commercial vehicle industry. “The local assembly of Mercedes‐Benz trucks would prove as a strategic opportunity that would leverage the modernization of Pakistan’s logistics industry,” said the official.
He said the development will ensure healthy competition in the trucking industry and meet the logistics requirements of the China-Pakistan Economic Corridor (CPEC). Pakistan is expected to become a hub for transit and trade with one forecast as high as $3 trillion and $135 billion in yearly toll.
“Because of the incentives given in the Auto Development Policy 2016‐21, locally-assembled Mercedes‐Benz trucks would be offered at competitive prices,” said Gen. Faisal.
Dr Ralf Forcher said Pakistan’s infrastructure and construction sectors have registered significant growth in recent years, giving a boost to the logistics industry that, in turn, means increased demand for commercial vehicles.
In addition, the CPEC, which includes a wider transportation network that link seaports in Gwadar and Karachi with northern Pakistan, as well as points further north in China and Central Asia, has given a boost to the auto sector in the country.
Auto sector has remained one of the best-performing sectors at the Pakistan Stock Exchange (PSX) in recent years.
Despite current and expected minor shocks like rupee depreciation, an uptick in inflation and rise in commodity prices, analysts believe the auto industry is expected to show strong growth in 2018 and beyond.
Trucks and buses sales remained strong, growing by 21 percent in a year on year comparison, while during the 7 month fiscal year 2018 sales rose 18 percent in a year on year comparison with the corresponding period. The rising sales trend is believed by experts to be further fueled by CPEC, higher road connectivity, low financing rate, robust growth in LSM sector and change and enforcement of axle load limit per truck on highways.