Sojitz Corporation has announced a collaboration with Hyundai Nishat Motor Private Limited (HNMPL). This means that the company has been granted the approval to assemble and manufacture Hyundai vehicles within the country.
Plans of establishing an assembly plant in December 2019 in Faisalabad is currently in the pipeline for the brand. The project is estimated to cost around $140mn.
On the other hand, sales of the vehicles will be carried out through distributor-owned dealers and franchise dealers, with the goal of reaching 6% market share by 2024.
The joint venture will produce HMC passenger cars and 1-ton range of commercial vehicles in Pakistan. Finding potential in the opportunity to experiment and profit from the sector, the Japanese conglomerate joined hands with HNMPL.
According to a local website, Pakistan’s automotive sector has an annual growth rate of over 10%, with numbers still on the rise. Sojitz Corporation currently holds a 40% stake in this new venture, with Millat Tractors owning 18%, Nishat Mills 12% and other associate companies holding 10% each.
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