As per the agreement, Afzal Motors will set up a plant in Karachi for the production of commercial vehicles with an annual production capacity of 3,000 units. While the investments for the facility will be by Afzal Motors, TDCV will provide the technological assistance. Commercial production will begin by the end of 2006. The agreement was signed by KO Chae, president of TDCV, and Muhammad Ghufran, chief executive of Afzal Motors Ltd.
A number of Indian manufacturing firms like Bajaj Auto, Dabur and L&T have evinced interest to enter Pakistan but have refrained from doing so as the political situation between India and Pakistan is not conducive for trade relations between the two countries. This is the reason why Tata Motors has entered Pakistan through its 100% Korean subsidiary, Tata Daewoo, which it acquired in 2004. TDCV is also the first Korean truck making company to make an entry into Pakistan.
Recently, State Bank of India chairman AK Purwar made public SBIs plans to start Pakistan operations. Punjab National Bank and Bank of India are also reportedly in race to cross the border. Tata Motors group company, Tata Consultancy Services, has also expressed interest to begin operations in Pakistan.