Hyundai Nishat Motors Ltd (HNML) has been granted approval to set up a greenfield project to undertake assembly and production of passenger and commercial vehicle from its plant based in Faisalabad.
The company has entered into an investment agreement with the Ministry of Industries and Production under Automotive Development Policy 2016-21 to set up a greenfield project to carryout assembly and sale of passenger and 1,000 commercial vehicles in Pakistan, according to the stock filing by the parent company, Nishat Mills Limited.
Under the agreement, the project will be able to avail duty concessions and incentives available under the Automotive Development Policy 2016-21, subject to completion of requisite formalities. The new automotive company has planned a groundbreaking of its project on December 20, 2017 at M-3 Industrial City Faisalabad.
Hyundai Nishat Motors Ltd is one of the automotive companies initiating its business in Pakistan backed by a strong Nishat Group having more than 25 associated companies in multiple sectors.
The company is gradually gearing up its operations to make arrangement of its productions of vehicle in Pakistan along with its global partner, Hyundai Motor Company.
Last month, there was a teaser released on its official website related to hybrid cars that are likely to be available in Pakistan. These brands are Tucson, Creta, Elantra and Verna—all come in the bracket of high-end and luxury Sedan cars.
The Ministry of Industries and Production has classified two categories. Category-A included Greenfield investment status that was granted to four auto investors.e Hyundai Nishat Motor (Private) Limited, Kia Lucky Motors Pakistan Limited Karachi, Regal Automobiles Industries Limited Karachi, United Motors (Pvt) Limited Lahore.
These companies will bring an investment of minimum $500million or equivalent of local currency ito set up their operations once agreements are signed with the ministry.