An Indian auto giant is in touch with some local business houses with the aim to launch its vehicles in Pakistan.

The Indian company, Mahindra and Mahindra Limited (MML), attracted by the effective demand for automobiles, is engaged in discussions with four to five local business houses in a bid to strike a deal with a company for its vehicle production in Pakistan.

However, there is a glitch as everything depends on the green signal from the Pakistani government. It is still not clear if the government would allow the Indian company to take the plunge in over heated domestic automobile market, dominated by Japanese assemblers.

Besides Mahindra, many Indian auto assemblers have now set their eyes on the further improvement of regional and political relations as they are keen to see their vehicles plying on the roads of Pakistan.

"We are keeping us prepared. We are ready to enter into a joint venture with any Pakistani business house for the progressive assembly of their vehicles as soon as trade relations improve and both countries open their trade," Deputy General Manager, Overseas Operations, Automotive Sector, Mahindra and Mahindra Limited (MML), Sanjay Jadhav told Dawn in an interview before flying back to Mumbai on Tuesday after a few days stay here. However, he said that a lot depends on the response from the Pakistani government and future opening of trade relations between Pakistan and India.

The Mahindra executive was in Pakistan to get the feel of the market and to make direct contacts with some reputable business houses, which are already in the auto business or are planning to enter in the auto segment. Without quoting the name of Pakistani business houses, he said he had a fruitful discussion with some four to five well known companies.

"So far no memorandum of understanding (MoU) has been signed between Mahindra and any of the Pakistani company for the joint venture," he said hoping that chances are bright for a joint collaboration in auto sector in the light of growing trade and political relations. "We see bright prospects for Indian vehicles in Pakistan," he said.

http://www.dawn.com/2004/10/13/ebr4.htm