Hyundai Motor Company plans to set up a car assembly plant in Pakistan in a joint venture with local textile firm Nishat Mills, an official from Nishat said on Friday.
According to Reuter’s report, Hyundai’s return to Pakistan will boost the government’s efforts to shake up the Japanese- dominated car market and loosen the grip of Toyota, Honda and Suzuki, who assemble cars in Pakistan with local partners.
Hyundai and South Korea’s Kia Motor used to assemble cars in Pakistan until 2004 but withdrew after their local partner Dewan Farooque Motors Limited went bust.
It was not clear how much capital Hyundai, South Korea’s largest automaker, would itself invest in the Pakistani venture.
Representatives for Hyundai could not immediately be reached for comment.
Nishat Mills is a subsidiary of Nishat Group, a giant in the Pakistani banking, textiles, energy and cement sectors. Its share price rose 1.4 percent after the announcement. “Today we have signed a memorandum of understanding between the two companies and we will set up a project for the assembly and sales of both passenger and commercial vehicles,” Nishat Mills company secretary Khalid Chauhan said.