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  1. GATT: The implications on local industry
  2. Shipbreakers fear collapse of industry
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  4. EC-Pakistan Economic Co-operation: The Asia Invest Facility
  5. China holds Pakistan in high esteem: Lu Shulin
  6. Performance of Pakistan's economy
  7. Need for improving corporate governance
  8. FACTS

Sep 20 - 27, 1999

Sponsors : Dewan Farooque Motors Limited

Technical Assistance : Hyundai Motor Company

Factory Site : Sujawal, District Thatta

Total Project Cost (Greenfield Project) Rs.1.2 billion

Authorized Capital : Rs.500 million

Production Capacity : 10,000 Units per year. Expandable to 20,000

Engine : 2600 cc

Fuel type : Diesel

Deletion Level : 28 per cent

Future Production Line : 1000 cc Hyundai car

12-seater Grace Van/ Minibus with 2600 cc Diesel Engine

Hyundai Grace Ambulance(Locally Converted).

Dewan Farooque launches Hyundai 2600 cc pick-ups

Next move will be launching of 1000 cc cars

Dewan Farooque Motors Limited has joined the club of automobile producers in Pakistan by launching "Shezore", the first locally assembled 2600 cc pick-up, in technical collaboration with Hyundai Motor Company, Korea.

The location of Dewan plant at Sujawal in rural Sindh is an outstanding feature of this projects as it would not only provide job opportunities to local population but also contribute the much desired development in that rural part of the province.

Dewan M. Yousuf Farooqui, Managing Director of Dewan Motors, in his opening remarks at the launching ceremony, held in Karachi last week, observed that being spacious with high quality standards, robustness and attractive price and other features give Shezore a competitive edge over existing vehicles in the segment of 2600 cc in Pakistan.

Replying to a question, he said that since the Korean government put a ban on overseas financing due to current economic recession, the Hyundai Motor Company provided only technical assistance in launching of this projects. Out of Rs.1.2 billion, the total cost of the project Rs 500 million will be from equity while Rs700 million will be raised by financial institutions and DFIs.

Regarding the deletion target of Hyundai pick up he said that initially the production had been started with 28 per cent local parts as per the requirement by the Engineering Development Board, however, it would continue to increase indigenization at the rate of 5 per cent and would be able to attain 38 per cent deletion level within next two years.

Highlight the salient features of the project, he said it was vital that the country should turn to alternative sources for acquisition of technology. Korea today stands as a rising force in the world automobile market and offers tremendous advantages on all three counts i.e. product differentiation or superior technology cost effectiveness and quick response to changing customer needs in terms of fuel efficiency, cost affordability, design and styling.

At present Pakistan's automobile industry is completely dominated by Japanese manufacturers. Dewan Farooque Motors objectives are to build high quality, affordable and environment-friendly vehicles and have undertaken to offer a choice to Pakistani customers not only in terms of low cost but also styling, performance, safety, dependability etc.

Syed Mateen Ahmed, Director of DFM, was of the view that local production of Hyundai Vehicles will make a significant contribution to Pakistan's economy and ultimately help in attaining self-sufficiency in automobile production and earning foreign exchange by exports to neighbouring countries. The Dewan Hyundai technical collaboration augurs well for Pakistan. Mateen said that Shezore 1.0 ton pick-up is now on display at all authorized Hyundai dealers in the country. It is available in four colours at a price of Rs535,000 (ex-factory) inclusive sales tax. DFM will do computerized balloting to determine the sequence of deliveries so as to ensure fair and equal opportunities to all customers. The company has also ensured availability of genuine Hyundai parts and repair facilities throughout the country. The next model, to be locally assembled and produced, would be 1000 cc car, a product of Hyundai's latest R&D with features like electronic Fuel Injection, superior and spacious, interior, exterior, safety features and fuel economy, he said.

The sponsors were hopeful that the project would be contributing to the national economy in the form of direct and indirect employment opportunities at company, vendor industry and commercial stages.

The automobile industry provides a strong foundation for rapid growth of the economy, he observed.