Nishat group has shown interest in the upheaval of current auto industry trends. They want to launch econo boxes and hybrids, as per their press statements. Looking at their international portfolio, they have quite a few subcompact hatchbacks like the i10 (the successor of santro) and i20, which can compete with V2. It will be a good competition overall. However, it will depend on their prices and features. On paper, and looking at the prices in international market, these cars do look really good and will be a welcome inclusion in the Pakistani auto sector. The prices in the Indonesian market are already higher than V2, and are around 13-18 lacs. Together with the Kia Motors portfolio, being brought here by Younas brothers group (Lucky Cement), it will be a really good competition overall and an exciting time ahead for auto enthusiasts.
There are some other cars that can compete with city car category (Wagonr and Celerio/New Cultus). These will include Kia Picanto and Hyundai Eon. However, I doubt there is any 800cc engine being produced by Hyundai and Kia, and I further doubt that they will manufacture one just for the Pakistani market. These city cars, if priced and marketed well, might make the Suzuki Mehran a history by bringing affordable cars with great features near the price bracket for Suzuki Mehran.