Yamaha a Japanese auto company would invest US $150 million to establish the manufacturing plant of motorcycles in Pakistan. This was revealed in a meeting by a visiting three-member delegation of Yamaha comprising Sumioka Ryouichi, Executive Officer, ITO Yasushi General Manager and Highuchi Yakeshi Senior Manager who called on Chairman Board of Investment, Saleem H. Mandviwalla here on Tuesday.
Later, talking to the media, chairman BoI informed that M/s Yamaha Japan has approached Board of Investment through their mission in Japan with the proposal to manufacture Yamaha motorcycles in Pakistan. He said that M/s Yamaha would like to invest US $150 million to establish their manufacturing facility of world renowned Motorcycle in National Industrial Park, Bin Qasim, Karachi by acquiring 50 acres of land. The motorcycle manufacturer will have EFI engine, automatic transmission, water cool & environment friendly exhaust system, meeting European standards in this plant.
He said, "It will not only meet the demand of Pakistani market but will also enable them to export their model to various CIS countries. He informed that keeping in view the current fuel and energy situation in Pakistan, Yahama will produce state of the art motorcycles with less fuel consumption of rupees 10 per 30min drive which covers the distance of 40-50km.
Mandviwalla informed that President of Pakistan during his visit to Japan on February 21-23 2011 also held meeting with Yamaha officials and ensured that government has framed the rules and procedure for the foreign investors in the auto sector. The BoI is working to frame a policy on production of high technology products with environment and consumer satisfying features.
The Board of Investment, being a facilitator of investments in the country, strongly feels that the New Entrant Policy of Automobile should focus on considerable interest of important international auto manufacturers in Pakistan market and to meet the local demand and supply gap of various sectors. Recognising that the existing assemblers/manufacturers of vehicles have over the years developed many parts and components locally and the factor that auto industry is yet heavily import dependent for various materials and components, with marginal exports, an import duty exemption of five years will support to increase the company's marginal profits in some extend till 2020, he quoted Sumioka Ryouichi.
Concluding, he said that Yamaha investment in Pakistan will create 45,000 jobs for locals and with the transfer of technology in manufacturing of motorcycle, vendor skill capability and capacity will also be developed with exclusive training institutes being run by the company.
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