KARACHI: Dewan Farooque Motors, manufacturer of famous Shehzore Truck, has announced plans to restart vehicles’ production of different segments by end of October 2016.
According to an official announcement made to shareholders on Monday, Dewan Farooque Motors will resume its production under toll manufacturing arrangement and in this regard the company has entered into a toll manufacturing agreement with Daehan – Dewan Motor Company (Private) Limited, which is a joint venture between Yousuf Dewan Companies and KOLAO Group based in Lao PDR and South Korea.
‘The installation of Jigs and fixtures for assembly of vehicles is in process and the production of vehicles is expected to start by the end of October 2016’, it added.
Chief Executive Officer (CEO) of Engineering Development Board (EDB), Tariq Ejaz Chaudhary while talking to Daily Times has appreciated the Dewan Faroooq Motors’ decision of resuming production adding that new auto policy has opened doors to attractive investment opportunities in auto sector of the country.
Chaudhary said new auto policy is proving to be fruitful as healthy completion in the country’s auto sector will be beneficial to the end user. He added that the government’s plan to give incentives to new entrants with tax and duty benefits is yielding and the consumers will have variety of choices.
In recent years, automobile demand in Pakistan is increasing while new entrants like Volkswagen, Europe’s largest auto maker, is also contemplating to introduce one of its car brands in Pakistan soon.
Auto Industry Development Program (AIDP II) offers incentives to new car makers to enter into Pakistan and also gives an opportunity to ailing units like Dewan Farooque Motors.
Dewan Farooque partnered with Korean brands like Hyundai and Kia to produce its first car on January 15, 2000. The company received an extraordinary response especially for its Hyundai Santro and Hyundai Shahzore; a one-ton truck.
The company sales grew well until 2008, but it faced various challenges afterwards and currently the productions and sales are next to zero. After a gap of three years, Dewan Farooque Motors produced a few hundred cars in fiscal year 2014 and 2015 based on its old inventory.
The revival would likely to see the re-launch of Shehzore 1-Ton single rear wheel truck and Shehzore 1-Ton truck.