You may recall news about Hyundai planning to set up an assembly plant in Pakistan in partnership with Nishat Mills Limited. Nishat Group’s owner, Mian Mansha, revealed that the South Korean company is planning to introduce electric and hybrid 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. 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.
Mian Mansha Investing $120 Million
Mr. Mansha is also going to invest $120 million in this project. The land for the project has already been acquired and it will be in an industrial zone near Faisalabad.
As for the ownership of the new assembly plant, Nishat Group will have a 42% stake followed by Millat Tractors with an 18% stake. A Japanese company will have a 10% stake while the remainder will be put up in the stock market.
Hyundai is one of many companies eyeing entry (or in this case a re-entry) into Pakistan following the 2016 Auto Industry Development Policy which offers incentives to foreign car companies.
Kia and Renault Coming Soon
Another South Korean maker, Kia, has partnered with Lucky Cement which is owned by one of Pakistan’s biggest conglomerates, the Younus Group. They will be setting up a car assembly plant in Karachi.
French car company Renault is also planning to invest $100 million in the Gandhara Nissan plant in Pakistan.
Here to Stay
According to a financial analyst,
Hyundai and Kia have been to Pakistan before they had to wrap up business in the late 2000s after global recession hit the world and Pakistan, triggering economic slowdown. The positive thing about their comeback plans is that they are partnering with reputable local business groups with deep pockets. This shows their resolve to stay in this market for a long time.
Hopefully we will see new car models from Hyundai in the near future.