Nishat Mills is officially moving into the automobile industry through its union with Hyundai Motors. The Nishat Group, owned by the Mansha family has its toes in banking, cement power, and many other sectors and now is broadening its horizons by entering into the auto industry.
In a letter to Pakistan Stock Exchange, Nishat mill Limited informs that the company has resolved to enter into a Memorandum of Understanding (MoU) with Hyundai Company. The two companies together will set up a greenfield project for assembly and sales of HMC passenger and 1-ton range commercial vehicles in Pakistan.
Last November, Business Recorder reported that Nishat and Lucky are looking to get a piece of the automobile industry owing to the new auto policy in Pakistan. In December 2016, Lucky cement announced that it will invest Rs. 12 billion to set up an assembly part for KIA vehicles. At the same time, Nishat Mills was also rumored to partner up with Hyundai Company to assemble cars in Pakistan.
In 2016, Automotive Development Policy (ADP) 2016-21 sow the seeds of development in the automobile industry as it provided benefits for companies to come and invest in Pakistan’s auto sector. The benefits of which could be seen in Renault’s entry in Pakistan, a partnership between KIA and Lucky Cement and Nishat Mills and Hyundai Motors. FIAT Chrysler is also likely ton enter the Pakistan’s automobile industry.