Three Companies Get Approval To Set Up Car Assembly Plants in Pakistan

The federal government has officially granted permission to three new companies for setting up car assembly plants in Pakistan.

These companies are set to bring $372 million investment in collaboration with local partners. According to the secretary Khizar Hayat Gondal, the Ministry of Industry and Production (MIP) has approved licenses for United Motors Private Limited, Kia-Lucky Motors Pakistan Limited and Nishat Group under the Greenfield investment category.

Hyundia, Kia and More

He also said that these companies will bring a total investment of $372 million. Kia-Lucky Motors will invest $190 million, the biggest sum, followed by Nishat Group with $164 million and United Motors at $18.1 million.

Nine companies were eager for setting up shop in Pakistan however only three of them have received the required approvals until now. The secretary states that the documents submitted by other companies are being looked into.

The news comes mere days after the Prime Minister dissolved the Engineering Development Board (EDB) due to corruption and for stopping new car manufacturers from entering Pakistan.

Official Government Notification

A notification was issued to the above mentioned companies by MIP. It stated that:

The government of Pakistan is pleased to award the Category-A Greenfield Investment Status to United Motors (Pvt) Limited for assembly/manufacture of vehicles covered in the exclusive contract agreement,

A similar notification was issued to the other two companies as well.

United Motors is partnering with a Chinese manufacturer for a joint venture. Nishat Group is collaborating with South Korean Hyundai Company while Lucky Cement is going to set up a manufacturing plant with Kia Motors, also from South Korea.

New Auto Policy

Back in March the government rolled out the new auto policy in order to attract foreign investment and to open up the local market for competition. New entrants were given tax holidays with reduced import duty rates to facilitate them in setting up assembly/manufacturing plants in Pakistan.

European car maker Renault was also interested in heading to Pakistan. According to the Board of Investment, Renault was in talks with the government but did not submit any application for setting up a manufacturing plant.

The Auto Industry Development Committee will hold another meeting after Eid to review more applications for car companies.

A techie, Overwatch and Street Fighter enthusiast, and Sub Editor at ProPakistani.


  • Hippo

    Mein to suxuki hi loun gi

    • Wohi Mehran !!!! HAHAHAH
      Our National Car…..

      • Hippo

        Suzuki mera pyar.

      • Kisy di ty jan chad ty. Bajian nu v pe jana en

  • hamid

    It will be a great revolution in auto industry and these companies will also break the pride of Toyota Pakistan.

  • desi

    Thank Gog for dissolving the “Engineering Development Board”….mafia was trying to stop new player for years.

    • EDB Ko Bypass Nahi Kar Sakte :
      Spare Parts Facilites Sro 655 K Unde Yahi Kaam Karta hai : Ye SRO Band Howa to Industry Band Ho Jayeigi

    • Muhammad Kamran

      Mafia is some how succeeded; as upto 60% duty imposed on imported cars. We People are again restricted to local pateechar vechiles

  • Raja Maja

    i have seen a new company name in the article, can someone tell me or tell the writer for correction “Hyundia”

  • Asif Khan PTI

    Thanks God Hayundai is back

  • Asif Khan PTI

    Santro is best

  • Naseem Khan

    Great news,this will not only attract investors but will break the monopoly of Toyota and Suzuki.It will also help stop corruption.

  • Ali Salman

    Questions: Why govt allowed this when existing manufacturers could give any amount in kickbacks ?
    Some might say new companies also would have paid in kickbacks, but will a new business
    setup will pay more (with uncertain future in Pakistan) or an existing one earning billions already?

    Question is for those pointing finger at any decision by government.

  • Hyundia Nayi Brand hai kia?

  • saad

    i also want to see new car manufactures to come in pakistan becasue suzuki are making us to much fool that we all cant believe. wagon r 11lakhs swift 14lakhs cultus nearly same. and what features are they giving? nothing, koi mazbuti ni, nor any reliability. bs cheap ha tou logon ko c bana rhe. and we pakistanis are more stupids even me also logon k stress ma a k suzuki le letey why? maintaince sasti ha. suzuki ciaz 18lakh wtf jo ciaz leta ha wo sb sa bara chutia ha sorry tou say but yes he is 18lakh ki gaari le sktey ho tou kia maintaince ni krwa sktey? toyota lo suzuki ko khud hmm logon na he sir pa bethaya ha