Uncertainty damages the Datsun car project

KARACHI: Gandhara Nissan Limited (GNL) is seeing the future of the Datsun car project fall short of no roadmap on the localization of the parts by Nissan Motor Company Limited (NMCL).
 In the project progress report submitted to the Pakistan Stock Exchange (PSK), GNL said that the company, together with NMCL, had more time and resources to ensure maximum localization effectively. Have invested.

However, the company said that NMCL's recent business strategy, in particular, the Dotson sector management policy, has changed, so it is important to believe that Indonesia, which is the Datsun complete knockdown (CKD). The main plant for kits is that it cannot be a sustainable source.

The GNL added, "Although we are still waiting for the confirmation/assurance of the NMCL on the continuous and smooth delivery of Datsun Parts, it is time now to receive a clear roadmap from the NMCL. We will stop the ongoing activities. '

Therefore, unless the NMCL makes a final decision on the project, the GNL will have to wait for the final decision to take effect.

The company told PSX that GNL is also looking for other routes in parallel to expanding its existing operations capability while examining the benefits of brownfield status.

It should be noted that in October 2019, GNL said it was reviewing the Datsun vehicle assembling plant in the country because it felt that the prevailing economic situation and exchange rates were 'especially during this level of volatility. Can't afford to go that far for the project '

"Apart from the challenges related to the project, the local economic conditions, especially the automobile market situation, have forced us to review the project's stability," said a GNL official.

He said the company had to reprogram the project's timeline due to unsatisfactory economic conditions, high-interest rates and weak currencies.

Earlier, GNL planned to launch 1200 cc Datsun Cross by 2020 and invest Rs 6.5 billion over the next 4 years to launch 1200 cc Datsun Go and Datsun Go Plus at its plant in Port Qasim.

In addition, the company had planned that more than 30% localization would be achieved in the first 3 years of its launch.

However, the company said during a stock filing in October 2019 that due to lack of experts and technology in the local market, the localization of some parts was not possible or would require too much time and resources.

On the other hand, MMCLC is exploring options for manufacturing these parts at a minimal cost to the global market for imports as part of the Kits.

It is to be noted that GNL had limited time to meet all basic needs and start commercial production by June 30, 2021, to gain Brown Field concessions for newcomers.