An announcement was made by Sojitz Corporation that it will manufacture and assemble Hyundai vehicles in Pakistan for Hyundai Nishat Motor Private Ltd. Sojitz Corporation inked an agreement with Hyundai to set up the greenfield project. The estimated cost of the project is $ 140 million.
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The auto assembly plant of Hyundai Nishat is under construction in Faisalabad, Pakistan. It is expected that it will be completed by December 2019.
Hyundai vehicles sales will be done by distributor-owned and franchise dealers. The goal of the automaker is to capture 6% market share till 2024.
Hyundai has collaborated with Nishat Mills Limited to enter the wholesale and retail market for the production and sale of Hyundai vehicles in the country.
Pakistan’s Automotive Development Policy 2016-2021 established in March 2016 encouraged foreign auto companies to invest in the country. Availing the opportunity Sojitz Corportation and Nishat Mills Limited developed Hyundai Nishat Motor Private Limited (HNMPL) to conduct a study and analyze sale of Hyundai vehicles in Pakistan.
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As per Sojitz Corporation, the auto policy and political stability in Pakistan encouraged auto companies to enter in Pakistani market.
Presently Sojitz Corporation has 40% stake in the new agreement while Millar Tractors, Nishat Mills and other companies have 18%, 12%, and 10% each stake respectively. Other associate companies include names like Adamjee Insurance, Security General Insurance and DG Khan Cement.
Founder and CEO of Nishat Mills Limited 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.”