• Thursday, October 17, 2019

Hyundai to start local production from January

Discussion in 'Infrastructure & Development' started by Devil Soul, Oct 9, 2019.

  1. Devil Soul

    Devil Soul ELITE MEMBER

    Messages:
    22,741
    Joined:
    Jun 28, 2010
    Ratings:
    +46 / 28,390 / -1
    Country:
    Pakistan
    Location:
    Pakistan
    Hyundai to start local production from January
    The Newspaper's Staff ReporterUpdated October 09, 2019
    Facebook Count25
    Twitter Share

    15
    [​IMG]
    Hyundai Nishat Motors Private Ltd (HNMPL) will start local assembly of Porter H100 pickup with 20 per cent indigenisation from January next year, the company announced on Tuesday. — AFP/File
    KARACHI: Hyundai Nishat Motors Private Ltd (HNMPL) will start local assembly of Porter H100 pickup with 20 per cent indigenisation from January next year, the company announced on Tuesday.

    The company also opened its 3S dealer and digital showroom in the city and introduced Hyundai Ioniq Hybrid car. Talking to newsmen after inaugurating the showroom, HNMPL Chief Operating Officer (COO) Tatsuya Sato said the total investment at the Faisalabad manufacturing facility is $150 million with an annual production capacity of up to 15,000 units. The plant will employ 250 people directly, he added.

    HNMPL – a joint venture company between Nishat Group, Sojitz Corporation (Japan) and Millat Tractors Limited – is partnering with Hyundai Motor Company (Korea) to become a leading manufacturer, marketer and distributor of automobiles in the country.

    When questioned about low localisation and few jobs, the COO said localisation level would be increased to 45 per cent in the next five years which would also open new job avenues.

    ARTICLE CONTINUES AFTER AD
    Talking about the uncertain rupee-dollar parity, he recalled that it has changed the project feasibility. “One dollar was equal to Rs105 when we initiated the project as compared to current rate of Rs156-158,” he said, adding that the rupee-dollar parity is also hitting existing assemblers despite achieving 65 per cent localisation. “Higher indigenisation in vehicles can stabilise on which we are focusing more,” he added.

    Published in Dawn, October 9th, 2019
     
    • Thanks Thanks x 1
  2. 313ghazi

    313ghazi SENIOR MEMBER

    Messages:
    5,769
    Joined:
    Mar 14, 2017
    Ratings:
    +28 / 10,099 / -0
    Country:
    Pakistan
    Location:
    United Kingdom
    This bit is good news. There are loads of benefits to localisation.

    1. Cheaper cars = more sales = larger market share.
    2. This will also lead to more competition and either a drop in prices of cars, or an end to Toyota/Honda/Suzuki monopoly in Pakistan.
    3. More jobs for local people and business with local companies.
    4. More taxes paid.