Re-launch Of Dewan Farooq Motors Likely In September

ISLAMABAD, (UrduPoint / Pakistan Point News - 10th August, 2016) : Following the Automotive Development Policy (ADP) 2016-21, the Dewan Farooq Motors Ltd (DFML) has applied for revival of their plant and submitted a plan for local production of DAEHAN, SsangYong and KIA vehicles. The plan has been submitted to board of Investment (BOI) and Engineering Development Board (EDB), according to EDB press statement issued here Wednesday.

The statement said the initiative shows that the ADP 2016-21 prepared by Ministry of Industries and Production has started producing results. The revival will mainly commence with re-launch of Shehzore 1-Ton single rearwheel Truck with Hyundai Power-train in September 2016 followed by Shehzore 1-Ton Truck with dual real tyre in October 2016.

This would 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 an agreement with SsangYong Motors Company, fourth largest automobile manufacturer in South Korea, the statement added. 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 Brown field 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. A similar application by a large Lahore based motorcycle manufacturing company for manufacturing of Cars/LCVs is also under consideration.