Presented by,Shahnawaz Bhamani

Rameez GoharSuleiman Salim

Wajahat

FAW China Introduction

Founded in 1953.

Headquarter in Changchun, Jilin China.

Commonly known as FAW (First Automotive Works).

More than 60 years in automobile industry with continuous innovation.

Has more than 1 lakh employees

Operating in 70 countries.

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Core Focus on Heavy, Medium and Light Commercial Trucks and Prime Movers.

Dominant position in truck market.

Also expands their automobile business in medium and light commercial vehicles.

Biggest supplier to Chinese Military. FAW has 28 owned subsidiaries in which 18 partially

owned and joint venture with other companies.

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FAW - VolkswagenFAW - ToyotaFAW - MazdaFAW - GM

AL-HAJ Group

Established at Jamrud Khyber Agency in District Peshawar, Khyber Pakhtunkhwa.

Initially importing and exporting of Electronic products, Clothes and Tyres.

Later became main dealer of Hino Pak.

Has maintained a good relation with China, Afghanistan, UAE and throughout Pakistan.

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Involves in,Oil Exploration and Production.

AL-HAJ Transport and Logistics.

AL-HAJ Industrial Corporation.

AL-HAJ FAW Motors.

AL-HAJ Metallic Industry.

AL-HAJ FAW Motors

Joint venture between AL-HAJ Group and FAW China in October 2006.

Technical Assistance and Distribution agreement with FAW China.

Introduced Heavy Commercial Truck in 2006.

Core focus on good quality, reliability, economical and well designed vehicles.

Pattern of Expansion

1. Passive to Active Expansion: Entered into commercial market in 2006 with

importing Heavy Trucks from China (CBUs).

Rapidly gained reputation and 30% market shares .

Gradually increased product range to Light Commercial vehicles and medium trucks.

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Became second highest Trucks seller after Hino Pak.

Pattern of Expansion

2. External to Internal Handling:Starts assembly plant under technical license in

2010 near Bin Qasim Port with 1 billion Rupees Investment.

100% equity financing with long term plans.

Importing Parts and assembled locally (SKD).

Producing and selling more, Lowering the cost.

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Latest Machinery, Infrastructure and equipments.

Are able to produce Heavy trucks, Prime movers, Light Commercial and Passenger vehicles.

Will produce 11000 units per annum.

Pattern of Expansion

3. Deepening mode of commitment: Huge commitment comes along for providing safety products and environmental

friendly.

One of the biggest 3s (sale, service and spare parts) facility under one roof in automobile industry.

Also provide special training and knowledge of vehicle's part.

Created more than 1500 job opportunities.

Good news for local dealers and raw material producers.

EFI and Euro 4 technology.

Auto financing Loan agreement with Bank Alfalah.

Green supply Chain Strategy award for being environmental friendly in Pakistan.

Pattern of Expansion

4. Geographical Diversification: Initially started from Karachi (Low Load shedding area) for assembly

plant.

Captured best dealers all over Pakistan.

Spreads whole networks in other main cities of Pakistan includes Sadiqabad, Bahawalpur, Multan, Sahiwal, Faisalabad, Lahore, Sargodha, Gujranwala, Rawalpindi, Islamabad, Peshawar and Mirpur with their best 3s service.

Helped in gaining reputation and market share, hence diversified the risk.

Also looking to target another cities as well.

Pattern of Expansion

5. Leapfrogging of Expansion: Quality features in engine.

Innovative design.

Luxury cabin.

Air bags.

Euro 2 and Euro 4 technology.

Environmental friendly has its core value in Chinese vehicles.

Boost and encourage local producer to produce quality materials.

Hard time

Political instability.

Economic Policies.

Sales tax 25%.

Negative brand image.

Conclusion