Hyundai Motor Company to assemble cars in a joint venture with Nishat Mills

Hyundai Motor Company plans to set up a car assembly plant in Pakistan in a joint venture with local textile firm Nishat Mills.

“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,” stated Khalid Chauhan, Company Secretary, Nishat Mills.

Hyundai's return to Pakistan will boost the government's compete with the Japanese-dominated car market and loosen the grip of Toyota, Honda and Suzuki, who assemble cars in Pakistan with local partners.

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.

Nishat Mills filed a statement with the Pakistan Stock Exchange saying the deal was “subject to applicable statutory and regulatory approvals”.

Last year, French carmaker Renault agreed to invest in a new factory in Pakistan and South Korean carmaker Kia Motor Co said it would start assembling cars in a joint venture with Karachi-listed Lucky Cement, part of the vast conglomerate Yunus Brothers Group.

 

 
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