Islamabad(PR):The Automotive Development Policy (ADP) 2016-21 by Ministry of Industries and Production has started producing results.
Under the incentives given for revival of closed units, Dewan Farooq Motors Ltd (DFML) has applied for revival of their plant submitted a plan for local production of DAEHAN, SsangYong and KIA vehicles to Board of Investment (BOI) and Engineering Development Board (EDB) respectively.
The revival will mainly commence with re-launch of Shehzore 1-Ton single rear wheelTruck with Hyundai Powertrain in September 2016 followed by Shehzore 1-Ton Truck with dual real tyre in October 2016.
The above mentioned investments by DFML shall be followed by introduction of 1.5 Ton Shehzore Truck and a 1600 cc Specialized Utility Vehicle (SUV) in collaboration with Ssangyong China in 2017.
The company also plans to launch passenger cars, light commercial vehicles and SUV in collaboration with KIA Motors Korea within next three years.
Dewan Group has also finalized agreement with SsangYong Motors Company,fourth largest automobile manufacturer in South Korea. DFML’s negotiations with KIA Motors, which is a part of HYUNDAI MOTOR GROUP, are at an advance stage for local
production of KIA range of vehicles in Pakistan. KIA Motors entry into Pakistan together with DFML is contingent upon availability of Brownfield facility under recently announced ADP 2016 – 2021. EDB has started processing the case for re-launch of DFML which is likely to be approved soon.
By the introduction of Dewan Group, competition in local car market will increase as a result of launch of KIA Cars. Both BOI and EDB welcomed the investment and assured their support to DFML in a meeting to discuss the investment plan which was
chaired by Mr. Miftah Ismail, Chairman BOI/Minister of State and attended by ecretary BOI, CEO EDB, officials of DFML and senior government officers on August 03, 2016. A similar application by a large Lahore based motorcycle manufacturing company for manufacturing of Cars/LCVs is also under consideration.
