(BE2C2) — Nissan Motor Co. said Wednesday it will re-enter the Pakistan market in 2020 with a local production of its low-cost Datsun brand vehicles under a tie-up with a local partner.
The announcement comes as country’s auto sector is said to be doing well. Auto sector has remained one of the best-performing sectors at the Pakistan Stock Exchange (PSX) in recent years. Sales figures grew on the back of low level of inflation, interest rates, higher consumer lending, low oil prices and lifting of vehicles by investors for cab services like Careem and Uber. New players announced entering the market, while some old players looked to make a comeback as well. Existing players also made an effort through new models.
And the rivalry among existing companies (Honda, Toyota and Suzuki) and forthcoming players like Volkswagen, Renault, Kia, and Hyundai etc to meet market demand will benefit car enthusiasts. Analysts expect healthy competition in the market from 2019 after the entry of new models of Korean and European brands.
Kia Motor Company announced entry in December 2016; Hyundai, Volkswagen and Renault announced their entry in 2017.
And now a Japanese brand.
According to a press release by Nissan Japan, Ghandhara Nissan Ltd., a Bibojee Group company, plans to invest some $41 million over the first four years in manufacturing and sales operations that are expected to create more than 1,800 jobs.
Japan’s No. 2 carmaker by volume did not elaborate on the details of its output plans, such as what models are to be built.
“This entrance to the Pakistan automotive market represents a significant step in the ongoing development of local manufacturing infrastructure and economic activity,” Peyman Kargar, a senior vice president at Nissan, said in a release. “This will deliver sustainable benefits for the national economy, customers, partners and Nissan.”
The Japanese carmaker resuscitated the Datsun brand in 2014 for inexpensive vehicles to attract young, first-time customers in developing economies where some of the world’s fastest growing markets are located.
The Yokohama-based company has rolled out the Redi-GO compact hatchback, the GO+, a family car with an extra back seat and other models in emerging markets like India, Indonesia, Russia and South Africa.
Nissan introduced the brand in Japan in 1932 but phased it out in the early 1980s.