Market Giant in textile, banking sector, energy and cement, Nishat group of companies have acquired another milestone. Nishat Mills, a subsidiary of Nishat group has signed a joint venture with South Korean automobile manufacturer Hyundai. They have inaugurated an assembly plant on Wednesday at M-3 industrial city, Faisalabad. Here, in two years local production of cars will start.
The venture, Hyndai Nishat motor Ltd will Assemble and produce passenger and 1 ton commercial vehicles. For this purpose, they have agreed to adhere to automotive development policy 2016-2021, signing accord on this occasion with ministry of industries and production.
With investors keen to invest and explore market opportunities and despite, at various occasions certain turmoil in the country that usually steers unrest in the country. We have lot of areas that seek attentions and promise progress and good turnover. And simultaneously we respect and acknowledge the confidence of investor for coming forward and investing in Pakistan. Prime Minister Shahid Khaqan Abbasi was speaking to participants on this inauguration ceremony.
He also told that now when you are here, you can better assess the opportunities and we have a history embedded with success and prosperity. What we are being portrayed is in contrast to our situation and that only underscores our potential. He was very grateful to the venture companies for showing interest and executing it with the aim to promote business.
The South Korean based Hyundai and Kia with their partner Dewan motors in Pakistan have been assembling cars but due to halt coming from Pakistani partner they stopped operations in 2004. Hyundai return will also mean disrupting the hold of Japanese car makers, Suzuki, Honda and Toyota. Ria will also venture with lucky cement and will be soon assembling its cars. Parallel to this, Renault a French automobile manufacturer has also envisioned to install its factory in Pakistan.
With relaxation in import duties, government is attracting investors and also to mitigate the high prices. Competition will significantly affect the prices, gradually shifting burden from consumers.
With large population Pakistan offers great market for car makers and we are still struggling to produce reasonable and affordable cars. Compared to our neighboring countries we are lacking far behind to acquire due share of automobile market.