PPT

1. Presented by,
Shahnawaz Bhamani
Rameez Gohar
Suleiman Salim
Wajahat

2. 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.

3. Continue…
 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.

4. Continue…
 FAW - Volkswagen
 FAW - Toyota
 FAW - Mazda
 FAW - GM

5. 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.

6. Continue…
Involves in,
 Oil Exploration and Production.
 AL-HAJ Transport and Logistics.
 AL-HAJ Industrial Corporation.
 AL-HAJ FAW Motors.
 AL-HAJ Metallic Industry.

7. 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.

8. 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.

9. Continue…
 Became second highest Trucks seller after
Hino Pak.

10. 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.

11. Continue…
 Latest Machinery, Infrastructure and
equipments.
 Are able to produce Heavy trucks, Prime
movers, Light Commercial and Passenger
vehicles.
 Will produce 11000 units per annum.

12. 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.

13. 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.

14. 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.

15. Hard time
 Political instability.
 Economic Policies.
 Sales tax 25%.
 Negative brand image.

16. Conclusion