Hyundai :- Sojitz Corporation has announced that it has reached an agreement setting up a greenfield project for the assembly and manufacturing of Hyundai brand vehicles in Pakistan under the umbrella of Hyundai Nishat Motor Private Ltd, costing around 140 million dollars.
Nishat Mills on Wednesday announced that Sojitz Corporation, Japan has released an announcement in Japan regarding setting up of the plant, entering the assembly, wholesale and retail business for Hyundai vehicles in Pakistan.
The Japanese company along with Nishat Mills Limited and its associates, a consortium forming part of major Pakistani conglomerate Nishat Group, and Millat Tractors largest tractor manufacturer will enter the agreement.
In March 2016, the Pakistani government established the Automotive Development Policy 2016-21, to encourage growth in the country’s automotive industry with an incentive policy for newcomers to the market.
Sensing an opportunity, Sojitz and Nishat Mills together established Hyundai Nishat Motor Limited to conduct an initial feasibility study for the sale of Hyundai vehicles.
Now, following capital injection and investment from the parties including Millat Tractors, Hyundai Nishat Motor Limited is set to launch its manufacturing operations.
Hyundai Nishat Motor Limited total setup cost be around 15 billion yen range. An assembly plant scheduled for completion in December 2019-is currently under construction in a special economic zone in Faisalabad. Sales will be carried out through distributor owned dealers and franchise dealers, with the goal of reaching 6 percent market share by 2024.
The Japanese company said in a statement that political stability in the country has sustained steady economic growth and in recent years, Pakistan automotive market has demonstrated an annual growth rate of over 10 percent.
The country’s automotive market is forecast to expand further thanks to rising numbers of consumers.
Sojitz Corporation has shareholding of 40 percent, Millat Tractors 18 percent, Nishat Mills 12 percent and other associates companies 10 percent each which are Adamjee Insurance, Security General Insurance and DG Khan Cement.