LAHORE: One of the biggest business conglomerates, the Nishat Group, has announced recently that it will make inroads into Pakistan’s fast growing automotive industry and has signed an agreement with South Korean carmaker Hyundai Motor Company for the production of hybrid cars.
This and other such developments come in the backdrop of the new Automotive Policy 2016-21 unveiled by the government in March last year. Sensing intense competition with new market players who have got incentives in the auto policy, existing auto assemblers have also brought new models and announced investment plans.
The Nishat Group had made up its mind in 2012 to enter the auto sector, but lack of incentives for fresh investments prevented it from initiating any venture.
“We attempted to venture into the automotive sector back in 2012, but the policy at that time was not favourable,” recalled Norez Abdullah, Chief Financial Officer of Hyundai Nishat Motor Limited in an interview with The Express Tribune.
“The auto policy has brought incentives for the new players based on which we have decided to enter this segment; Hyundai approached us and now we have started the new venture,” he said.