An agreement was inked by Master Motor Corporation and Yutong Bus Company to form a joint venture that would produce and assemble Yutong’s new energy city buses in Pakistan.
By building a greenfield plant, Yutong Master will become the first company to manufacture city buses in the area.
The New Energy City Buses from Yutong, which are both electric and hybrid, will improve public transport and meet government infrastructure objectives.
In an effort to promote economic activity, the Memorandum of Understanding was signed on June 5, 2024, during PM Shahbaz Sharif’s visit to China, by Huang Yuanchao of Yutong and Danial Malik of Master Motor.
Read more: 30 China-made electric buses arrive in Islamabad for two new routes
For Pakistan, producing city buses domestically has various benefits.
- Economic Development:
The establishment of regional manufacturing facilities boosts the economy, adds to GDP, and creates jobs.
- Lower Import Prices:
Pakistan can save foreign exchange reserves by reducing its reliance on costly imports and increasing domestic bus production.
- Customization:
Customisation to suit particular requirements, such as modifying buses for the local temperature, traffic patterns, and passenger preferences, is made possible by local production.
- Development of Infrastructure:
Infrastructure development, such as improved roads, maintenance facilities, and public transit networks, is supported by a strong manufacturing sector.
- Effect on the Environment:
Buses that are electric or hybrid and made locally can lower emissions, enhance air quality, and support environmentally friendly transportation.
- Technology Transfer:
Knowledge transfer, talent development, and technological improvements are facilitated by collaboration with international partners such as Yutong.
The following variables affect how much public transit costs:
- Initial Investment:
Significant setup expenditures for manufacturing infrastructure, technology transfer, and training may be associated with local production. The original cost of buses made locally may be impacted by these expenses.
- Economies of Scale:
Economies of scale become relevant as manufacturing increases. Cost reductions from higher production quantities may eventually result in buses that are more reasonably priced.
- Costs of Operations:
Because local manufacturers have easier access to spare parts and qualified personnel, their buses may require less maintenance and repair. This may have a favourable impact on fares.
In general, local production stimulates creativity, increases self-reliance, and benefits the populace and economy.