Al-Haj Automotive signs an MOU with Zhong Tong Bus of China


Recently, the Al-Haj Automotive an emerging conglomerate group in Pakistan has signed a Memorandum of Understanding (MOU) with Zhong Tong Bus Company of China. It seems that the MOU is signed for an initial 50 units of busses in CBU condition and along with that there would be a technology transfer & CKD cooperation agreement between the two companies.

The agreement was signed in China during a visit of Al-Haj executives; following this MOU Al-Haj will now manufacture the various models of Zhong Tong auto motors. These automobiles will range from luxury busses to city busses and coaches in various sizes and seating capacities.

This will all be done under the Greenfield investment regime defined in Automotive Development Policy (ADP).  Also, we assume that the Al-Haj group may apply for the Greenfield investment separately for this project in Pakistan.

Before the Al-Haj industries, the Zhong Tong bus project was headed by Dysin Automobiles and they launched the buses in Pakistan two years ago.

The Zhong Tong busses are manufactured in Jinan, China. It is said that the busses not only meet the performance standards but they also provide comfort, have a luxurious outlook and elegance. It has Chinese craftsmanship and European Technology along with many other things.

The busses industry at this time is at an all-time high with services like Air-lift and swirl being introduced along with plans to yellow bus lines just around the corner and moreover as CPEC develops rapidly.

The players are ready to compete, however, Al-Haj Automotive will certainly face challenges from the previous market leaders and runners like Daewoo and many others.

The presence of a swift infrastructure plays a big role in the success of a local bus line in the country.

Will Pakistan finally be getting good buses so that the common man can travel on local transport? Is this finally a step to work towards the lessening of carbon footprint in Pakistan?