Kia-Lucky to invest utmost $190 million followed by $164 million by Nishat Group and United Motors Will contribute $18.1 million. 9 automobile companies sent a request out of which 3 were given a green signal by the government.
New participants can dent Japanese-dominated automobile industry
The Pakistani government had shown green signal to three non-European automobile companies to put up their manufacturing plant in the country.
The Ministry of Industry and Production allowed Kia-Lucky Motors Pakistan Limited, United Motors Private Limited and Nishat Group to situate and build up their units under the Greenfield investment category for assembly and manufacturing of the motor vehicle.
3 great non-European companies would together invest $372 million
Khizar Hayat Gondal, Ministry of Industries Secretary stated that the companies in alliance with local partners will put in $372 million to set up the assembly/manufacturing plants.
He added ‘Kia-Lucky will make a maximum investment of $190 million, followed by $164 million by Nishat Group and $18.1 million by United Motors’.
United Motors would position up a manufacturing plant with Chinese collaboration and partnership. The Nishat Group will be in a joint venture with South Korea-based Hyundai Company and Lucky Cement would as well collaborate with an additional South Korean firm, Kia Motors.
The government had received nine companies request however in the first phase; only three companies have been given chance to craft inroads into the flourishing automobile industry.
A senior official of Lucky Cement confirmed that the corporation has been given consent to put up and create a plant in Pakistan.
60% shares would have allotted to Lucky Cement in the joint venture upon the investment of $150 million, he added.
Furthermore, Nishat Mills Limited would perform assembly tasks of vehicles with the help of Hyundai Company. The two companies jointly will set up a Greenfield scheme for assembly and sales of HMC (Hyundai Motor Company) passenger and 1-ton series commercial vehicles in Pakistan.
