Nissan Motor Co is entering the Pakistan market through a manufacturing and licensing agreement with automotive partner Ghandhara Nissan for local production of Datsun models. The agreement also covers distribution, providing access to a market where demand for new vehicles has grown to more than 200,000 units a year.

The move is part of Nissan’s strategy to engage with emerging automotive markets around the world, bringing brands and products tailored to meet rising consumer demand. Sales of the first locally built vehicles are expected to begin in Pakistan within the 2019 fiscal year.

“This entrance to the Pakistan automotive market represents a significant step in the ongoing development of local manufacturing infrastructure and economic activity,” said Peyman Kargar, Nissan senior vice-president. “We are confident that, with the close collaboration and support of the Pakistani government, this will deliver sustainable benefits for the national economy, customers, partners and Nissan.”

“Together with Ghandhara, we’ll be working actively with suppliers to localise and exchange technology and skills, which will provide a lasting benefit to the emerging local component industry,” Kargar added.

The automotive industry accounts for about 4 percent of Pakistan’s gross domestic product. Ghandhara will invest 4.5 billion Pakistani rupees (about $41 million) over the first four years. The project and the development of a retail network will create more than 1,800 jobs.

Nissan and Ghandhara are to work together to develop Ghandhara’s facilities in Karachi’s Port Qasim into a world-class manufacturing plant. The project has qualified for brownfield category status under the Government of Pakistan’s Automotive Development Policy.

“This agreement will introduce world-class facilities and the best of Japanese engineering technologies,” said Ahmed Kuli Khan Khattak, CEO of Ghandhara. “By localising the manufacture of parts and components and boosting development in the auto supplier industry, it will provide Pakistan with technical assistance and promote partnerships with Japan.