Hyundai Nishat Motors has entered into an agreement with the Pakistan Government to assemble and sell cars in Pakistan. The company has confirmed this in a stock exchange filing in Karachi that took place on Friday.
The launch ceremony of the plant of Hyundai Nishat Motors in Pakistan will be held on December 20th, next week in Faisalabad. This was stated on Pakistan Stock Exchange (PSX).
Hyundai will manufacture one-ton vehicles in Pakistan. Moreover, the project will get some tax relaxations under the auto policy.
On February 3rd, 2017 Nishat Mills and South Korean Hyundai Motor Company signed an agreement to establish the framework for developing a greenfield project for plant’s assembly as well as sales of one-ton range commercial and passenger vehicles in Pakistan.
Mian Mansha on collaboration with Hyundai said, “The (south) Korean car maker wants to first start the assembly of small cars that could compete with the existing (Japanese) assemblers already operating in this market. 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. We could import these cars in the beginning and later also start assembling them locally.”
As per sources and reports, the investment done on this project ranges between 400 million dollars to 500 million dollars.
The government revealed its Automobile Development Policy 2016-2021 in March 2016. This policy provides many facilities and incentives to automakers willing to enter Pakistan market like fewer import taxes on parts.