Nishat Group announced its joint venture with the South Korean automotive manufacturer, Hyundai Motor Company and took the sector by storm.
Both companies, now going by Nishat Hyundai, are in works of launching an automobile in Pakistan.
In an interview, Norez Abdullah CFO of Hyundai Nishat Motor Limited revealed that the company had attempted to enter the automotive market frey back in 2012, but the policy wasn’t very favorable at that time.
The companies want to introduce hybrid cars in Pakistan, but considering the cost of installing such infrastructure is costly, thus in the current situation, both partners have yet to reach an accord on how to proceed further.
However, analysts predict that they will soon approve and launch either a car of 800cc or 1000cc soon. The analysts explained the following points:
- Conducting feasibility on which car(s) to be launched in country
- Start company operations by introducing (select) imported vehicles and gauge public’s response on them.
- Bring hybrid technology in Pakistan and build after-sales service and localization network.
According to Norez, where the 800cc segment will appeal more to emerging middle-class and produce minimal profit margins for the company; the 1000cc category is likely to be the polar opposite.
We are yet to see how both partners proceed with the introduction of a new car on the road.
Stay tuned to Brandsynario for more news and updates.