Hyundai to Open Car Assembling in Pakistan
Hyundai Motor aims to set up an assembling plant in Pakistan with the collaboration of Nishat Mills, an official from Nishat said on Friday.
Previously, Hyundai and Kia Motors used to assemble cars for Pakistani market under the partnership of Dewan Farooque Motors Limited until their partner suffered a huge loss. The recent return of Hyundai in the country will privilege the govt efforts to break the monopoly of Japanese-dominated auto market that include Toyota, Suzuki, and Honda within Pakistan.
Up till now, both the partners Hyundai and Nishat Mills have not disclosed the investment terms.
Hyundai Motors is one of the largest South Korean based automaker with an access to worldwide markets while Nishat Mills is a subsidiary business of Nishat Group, a Pakistani giant in textiles, banking, cement, and energy sector.
“Today we have signed a MoU between both the companies and we will jointly set up an assembly project for both LTV and HTV vehicles,” Khalid Chauhan, secretary Nishat Mills. In addition, Nishat Mills has also listed a statement of the deal with Pakistan Stock Exchange.
One of the leading French automakers, Renault also agreed to invest an assembly plant in Pakistan backed up by another investment from South Korean car maker Kia Motors during the fourth quarter in 2016. Kia Motors is also interested to assemble vehicles in Pakistan under the partnership of Lucky Cement, a business conglomerate of Yunus Brothers Group.
The government of Pakistan is fully aware of the fact that an increase in the auto making competition will provide a drop down price for the consumers. Govt. has also introduced a new auto policy that favors the new entrants to start their operations in Pakistani market.
Pakistan stays a potential market for automakers with the population of almost 200 million people. Despite the fact, only 1,80,000 cars were purchased in the 2014/15 financial year, comparitively low from two million passenger vehicles being sold in India during the same year.