According to Nishat Textile Mills officials on Friday, Hyundai Motor Company has planned to assemble cars in Pakistan in a joint venture with Nishat Mills.
So if Hyundai motors come in Pakistan, it will give boost to the efforts of the government to shake Japanese car market and loosen the grip of Toyota, Honda and Suzuki, who assemble cars in Pakistan with local partners.
After the withdrawal of local partner Dewan Farooque Motors Limited, Hyundai and Kia motors stopped assembling in Pakistan since after 2004.It was not clear how much capital Hyundai, South Korea’s largest automaker, would itself invest in the Pakistani venture. Representatives for Hyundai could not immediately be reached for comment.
Nishat Mills company secretary Khalid Chauhan said “Today we have signed a memorandum of understanding between the two companies and we will set up a … project for the assembly and sales of both passenger and commercial vehicles.”
Nishat Mills is a subsidiary of Nishat Group a giant in the Pakistani banking, textiles, energy and cement sectors. Its share price rose 1.4 percent after the announcement.
“The deal was Subjected to applicable statutory and regulatory approvals”, this is what Nishat Mills field a statement with Pakistan Stock Exchange.
The government believes increased competition should bring down exceptionally high car prices in Pakistan, and in March it introduced a new auto policy favouring new entrants into the market by offering generous import duties.