Hyundai to set up assembling plant in Pakistan

[AZADPAKISTAN2009]

Nice to see some new companies coming to Pakistan hope the relation is mutually beneficial

 

[SherDil]

Hyundai, the South Korean car makers, is looking to partner with Mian Masha’s Nishat Mills Limited to setup vehicle assembly plant in Pakistan, said a company announcement sent to Pakistan Stock Exchange.



Hyundai, a decade ago or so, used to assemble and sell cars in Pakistan through Dewan group. Since then, for a long time now, it was looking for a local partner for a re-entry in Pakistani market.

With this new development, it seems, Hyundai has found a local partner and soon a deal will be locked.

Nishat Mills, while speaking with Reuters, said that a memorandum of understanding has been signed between both the companies. It said that Pakistan’s plant will assemble both passenger and commercial cars.

Nishat Mills’s notice sent to PSX said that MoU with Hyundai Motor Company and Sojitz Corporation Tokyo, Japan is for negotiating and establishing a framework for setting up a green field project for assembly and sales of HMC passenger and 1 ton commercial vehicles in Pakistan.

 

[Nilgiri]

Hyundai to set up assembling plant in Pakistan

KARACHI (Dunya News) - The economic growth in the country has started paying off and following the improvement in the security situation and the government s offer to provide tax breaks for the foreign investors, several foreign companies have expressed interest in establishing their units in Pakistan.

In a major development in the auto industry today (Friday), Nishat Mills signed an agreement with Hyundai to set up an assembling plant in the country.

Agreement has been signed between Nishat Mills and Hyundai Motor Company of South Korea and Sojitz Corporation Japan for negotiating and establishing a framework for setting up a green field project for plant’s assembly and sales of passenger and one ton range commercial vehicles in Pakistan.

The establishment of the assembling unit would be commenced following statutory and regulatory approvals.

According to the market sources, the investment would range from 400 million dollars to 500 million dollars. After completion of the paperwork, the plant would be established within two to three years.

Sources revealed that some Chinese companies have also shown interest in investing in the country s auto sector. Companies namely FAW and Foton Automobile Companies are keen to invest in Pakistan.

http://dunyanews.tv/en/Business/373478-Hyundai-to-set-up-assembling-plant-in-Pakistan

Any idea how many jobs will be created?

I'm beginning to appreciate that its the job numbers that matter more than the investment/production value solely.

 

[shah1398]

What about Deewan Motors?
they used to be the ones introducing the Hyundai and Kia cars in Pakistan and last year they also announced to assemble Hyundai Shehzore again followed by Passenger Cars,

Is Hyundai dealing with two different Parties in Pakistan?

I think Dewan is dealing with Kia Motors (also Korean). The link below also says so.

Dewan Farooque to resume production from October

 

[RIP Pak LAW]

What about Volkswagen ? There was news back in 2015 regarding its possible assembly line in Pakistan. No agreement yet ?

 

[SoulSpokesman]

It starts with assembling. Manufacturing, both at OEM and ancillary levels will start once scales are achieved.

Regards

 

[Max Pain]

I think Dewan is dealing with Kia Motors (also Korean). The link below also says so.

Dewan Farooque to resume production from October

but
‘Yunus Brothers, Kia Motors to set up auto assembly plant’

 

[Nilgiri]

but
‘Yunus Brothers, Kia Motors to set up auto assembly plant’

Who are yunus brothers?

 

[Hollow Field]

Unfortunately, no transfer of technology will occur. Modulized components will be imported from outside and simply assembled together here. Basically, we are assembling them like lego blocks.

Its still a good thing and will create jobs, but not the ideal scenario.

 

[wasileo80]

I really hope they launch Elantra and Sonata at cheap rates to counter that japanese junk aka corolla and civic.

Not Sonata as Sonata is bigger car and comes in the league of Accord and Camery and will be expensive. Hyndai will introduce most probably Accent and Elantra any may be for Compact SUV Tucson in 2.0 range.

 

[Chak Bamu]

Unfortunately, no transfer of technology will occur. Modulized components will be imported from outside and simply assembled together here. Basically, we are assembling them like lego blocks.

Its still a good thing and will create jobs, but not the ideal scenario.

GOP has a policy which mandates a certain percentage of components be manufactured in Pakistan. Since Japanese are already following this program, Hyundai would too. There would not be much in the way of technology transfer, but there would be 2-3 new companies that would be established by Nishat Group to manufacture wiring harnesses, etc... This is how Indus Motors Company (Toyota partner) operates.

So, the benefit would be an expansion in capacity and that can only be a good thing. We should welcome any and all investment and improvement in choices available to consumers.

The down side of this deal can be use of influence by Mian Mansha's group to restrict imports and to keep locally manufactured cars' prices high. This is just a conjecture on my part, but seems like this is how large manufacturing conglomerates operate in Pakistan.

 

[Max Pain]

Who are yunus brothers?

its a group of different businesses

 

[Max Pain]

Unfortunately, no transfer of technology will occur. Modulized components will be imported from outside and simply assembled together here. Basically, we are assembling them like lego blocks.

Its still a good thing and will create jobs, but not the ideal scenario.

more localization would require more incentives by governments as well as skilled manpower,
but as competition increases due to multiple assemblers, it may result in more localization to bring the costs down as competition flares up, but it'll take time neverthless

 

[razgriz19]

I really hope they launch Elantra and Sonata at cheap rates to counter that japanese junk aka corolla and civic.

Have you seen the new civic and corrola?
They remain the best selling cars in North America to this day!
Civic is the best selling car in Canada.

 

[Max Pain]

Have you seen the new civic and corrola?
They remain the best selling cars in North America to this day!
Civic is the best selling car in Canada.

do compare the price and features offered in Canadian variants and then
pakistani variants