Lahore (Web Desk): Recently Nishat Group has signed an agreement with Hyundai Motor Company to set up a car assembly plant in Pakistan and has planned to introduce electric and hybrid passenger cars .

Chairman Nishat Group Mian Mansha told media, “The South Korean carmaker wants to first start the assembly of small cars that could compete with the existing Japanese assemblers already operating in this market,”.

Mian Mansha said, “Dialogue with them is underway… trying to convince them to also bring electric and hybrid cars . I see the future is in electric cars ,” he added, “We could import these cars in the beginning and later also start assembling them locally.”

Chairman Nishat Group is investing $120m in the project that will be set up in an industrial zone near Faisalabad. In reply to a question he said, “We already have acquired land for the plant”.

Nishat Group will have 42 per cent share in the new company with Millat Tractors holding 18pc and a Japanese firm 10pc. The remaining shareholding will be offloaded on the country’s stock market.

Attracted by incentives offered under the 2016 Auto Industry Development Policy (AIDP) to lure new, non-Japanese carmakers to the Pakistani market, Nishat Group is the country’s third major business group to have shown intentions of setting up a car assembly plant in collaboration with a foreign carmaker.

Lucky Cement, a company owned by one of Pakistan’s largest business multinationals Younus Group, has partnered with Kia, yet another Korean car brand, to assemble cars as well as commercial vehicles in Karachi. Besides, French carmaker Renault plans to invest $100m in the Ghandhara Nissan plant to bring its brand into Pakistan.