Sojitz Enters the Assembly, Wholesale, and Retail Business for Hyundai Vehicles in Pakistan
Sojitz Corporation (“Sojitz”) along with Nishat Mills Limited and its Associates (together referred as “NML”), a consortium forming part of major Pakistani conglomerate Nishat Group, and Millat Tractors Limited (“MTL”), Pakistan’s largest tractor manufacturer, will enter the assembly, wholesale, and retail business for Korean Hyundai Motor Co. (“Hyundai”) brand vehicles in Pakistan.
In March 2016, the Pakistani government established the “Automotive Development Policy 2016-2021” to encourage growth in the country’s automotive industry, with an incentive policy* for newcomers to the market. Sensing an opportunity, Sojitz and NML together established Hyundai Nishat Motor (Private) Limited (“HNMPL”) to conduct an initial feasibility study for the sale of Hyundai vehicles. Now, following a capital injection and investment from the parties including MTL, HNMPL is set to launch its manufacturing operations.
HNMPL’s total setup cost will be in the JPY 15 billion range. An assembly plant—scheduled for completion in December 2019—is currently under construction in a special economic zone in Faisalabad, Pakistan’s third largest city. Sales will be carried out through distributor-owned dealers and franchise dealers, with the goal of reaching 6% market share by 2024.
Pakistan is characterized by its high population, which reaches 200 million according to latest census. Political stability in the country has sustained steady economic growth, and in recent years, Pakistan’s automotive market has demonstrated an annual growth rate of over 10%. The country’s automotive market is forecast to expand further thanks to rising numbers of consumers.
Capitalizing on its many years of experience with the assembly and sale of Hyundai vehicles, Sojitz will work alongside NML and MTL (companies with local manufacturing, finance, and retail industry resources), to establish Hyundai’s presence in Pakistan as a powerful, quality brand, while simultaneously contributing to the development of the country’s automotive industry.