Nishat Group recently reported that the company recently signed an agreement with Hyundai Motor Company to set up a car assembly plant in the country and is planning to launch electric and hybrid passenger vehicles in Pakistan.
“The (South) Korean carmaker wants to first start the assembly of small cars that could compete with the existing (Japanese) assemblers already operating in this market,” Nishat Group’s chairman Mian Mansha told Dawn on Thursday.
“We are discussing with them… trying to convince them to also bring electric and hybrid cars. I see (that) the future is in electric cars,” he said. “We could import these cars in the beginning and later also start assembling them locally.”
Moreover, reports indicate that Mr. Mansha is planning to invest approximately $120 million in the project that will be set up near Faisalabad. “We already have acquired land for the plant,” he said in reply to a question.
Analysts believe that this move will help Hyundai Motor to secure big chunk of market share in the country’s auto industry. Adding to that, Nishat Group will have 42% stake in the new company with Millat Tractors holding a share of approximately 18%, while Hyundai Motor will hold 10%.
It seems that the country’s auto industry is making huge strides over the past few years. For instance, Lucky Cement, a firm which is owned by one of biggest conglomerates in the country, Younus Group, has recently signed a partnership agreement with Kia to assemble cars and commercial vehicles in Karachi.
In addition, it was recently reported that the French Automaker, Renault, also plans to invest approximately $100 million in Ghandhara Nissan plant in a bid to establish its presence in the country.
As per the analysts, the sales of cars has experienced a significant surge of more than 275,000 units, which includes used and new imported vehicles, sport cars, etc. along with attractive incentives for new market players announced in the auto policy FY16 in a bid to encourage new brands to invest on the country.