With around two million vehicles in the country plying the roads on CNG, and between 1,500 and 2,000 CNG stations, he stressed, that the market for his company’s products had grown remarkably.
The Italian corporation has been operating in Pakistan since 2006 through its subsidy LR PAK. An assembly line was established in 2007 to cater to the demand of Original Equipment Manufacturers (OEMs) and conversions. With 90 percent share in CNG sector of Pakistan, the company also exports kits to China, Iran and Brazil.
It was also noted that the total investment value of Landi Renzo in the Pakistan is more than two million euros, while the company has 90 percent share in the local CNG market. Landi Renzo has collaborated with leading car manufacturers in the local market and they also collaborated with most Tri-Wheeler manufacturers to provide an alternative fuel system for commercial purposes, he added. Their Tri-Wheeler partners include Palm Qingqi, Ahmed Automobiles, New Asia, Siwa and NJ.
At present, the group’s companies offers a wide range of LPG and CNG mixer as well as injection systems which are custom designed to cater to the needs of different vehicle models. They are destined for two major market segments, vehicle manufacturers (OEM) and the network of branches, retailers and installers. When asked on how the company was dealing with the severe gas shortage in the country; he said the situation ultimately depends on government policies and their practical measures to combat the issue.
He said the government can determine the criteria of taxation and duties in the sector and will adopt measures to bolster its growth prospects. However, he observed that the government has an alternative option in terms of LPG, which could be a major product for the company. Elaborating on the viability of future alternative energy options include the introduction of electrical engines, which still remains in its infancy, he acknowledged that the corporation is compelled to remain restricted to established options in Pakistan. He accepted Karachi is a major market for CNG but consumers should also consider the environmental implications of various products, he added.
Barbieri also pointed out that the company is waiting for the LPG policy, yet the company has registered with OGRA due to the lucrative potential of the product. He claimed that Landi Renzo places an emphasis on designing innovative technologies which has helped spread CNG and LPG technology and set a benchmark for the market in due course, he added. He went on to say that, “we are providing concrete solutions and aim at providing a new concept in terms of mobility through environment-friendly fuels providing environmental protection, energy conservation, independence from petroleum (especially for developing countries) and a chance for motorists to cut costs significantly”.Speaking on issues that are currently being faced in the market, he said the organisation has managed to run operations smoothly in the country but pointed out that the corporate taxation rate remains very high.
The energy shortage remains a burning concern but stressed there are also great opportunities for the industry to keep expanding. To a query, he stated that if facilitated, the company could invest in new infrastructure, possibly establishing new factories in Pakistan to generate employment as well as integrating a network of workshops in its manufacturing process. The government should do this for us and the policies of the government should be equal for the every foreign investment, and taxation should be done in line with the fundamentals for future investment, he added.
While speaking about road bumps in operations in the sector, he stressed that the law and order situation remains a major concern and the government should consider providing further security to those in the sector. We have strong knowledge of CNG with safe and efficient execution, while the local component doesn’t have good quality and the user is unaware about this, he said. Elaborating on current expansion plans of the company, he said it looks forward to establishing another assembling plant and factory in the port city besides developing a network of five workshops across the country. He said that Landi Renzo will offer their employees technical assistance and presently invests heavily in training and in some cases, send staff to Italy for further advanced training.
He also claimed that there is no significant price differential in local and the items sold by Landi and stressed that consumers need to be aware of the safety implications of the cylinder in their car. Therefore, they should minimise risk by placing quality CNG kits, he reasoned. The company has also proposed that the Sindh Government to outfit all buses with CNG kits and to develop roadside workshops in the city along with providing training to local mechanics and to educate them on the need to use genuine CNG kits in the vehicles.
