Hyundai to set up Auto Manufacturing Plant in Karachi.

[A.A. Khan]

Hyundai to Set Up Auto Manufacturing Plant in Pakistan

South Korean Auto brand, Hyundai, and Al-Haj group have joined hands to introduce heavy commercial vehicles (HCV) in Pakistan. With an expected investment of around Rs. 4 billion, the company initially plans to assemble trucks and luxury buses.

The joint venture company has already purchased 30 acres of land outside Karachi and is expected to start production within the next 12 months. During the first phase, Al-Haj Hyundai (Pvt) Limited, a separate company of the joint venture, will invest Rs. 1.5 billion. When the two companies agree to move forward, Hyundai will invest in the production plant in 2019.

Al-Haj Hyundai will introduce a bunch of new trucks, buses and light duty vehicles in Pakistan.

Heavy duty truck Xcient will be assembled and sold here.

The South Korean auto maker plans to introduce other cargo and passenger handling vehicles as the production progresses.

Hyundai Global Motors Co Ltd Chairman, Kyung Sik, said that he was confident in the company’s partnership with Al-Haj Group and it will help both players as Pakistan is a huge market with a rapidly growing demand.

Competition Heats Up
Currently, there are four Chinese truck assemblers in Pakistan and have gained 40% of market share in just 10 years while the rest is held by Japanese companies who have been present in Pakistan for decades.

Chinese trucks are cheaper (at Rs. 7.8 million), Japanese are slightly expensive (at Rs. 12.6 million), while European trucks from Volvo go as high as Rs. 16.5 million. Hyundai will launch their vehicles with a price ranging between the Japanese and Chinese brands.

German truck maker, MAN SE, is also expected to set up its plant in Pakistan and other companies have also shown interest in Pakistan hinting at a much more competitive market in the coming years.

About Al-Haj Group
Al-Haj Group has a market presence since 1960 and is already assembling Chinese trucks and passenger cars in Pakistan. Al-Haj CEO, Bilal Khan Afridi, believes that Hyundai chose it as its partner because of the company’s history with heavy vehicles.

Both companies plan to tap into the growing heavy vehicles segment as the China-Pakistan Economic Corridor (CPEC) continues to gain momentum. The company will set up a completely new infrastructure to take advantage of the tax benefits provided with the Auto Policy 2016-21.

Truck sales have rebounded strongly after seven years of below par performance. Thanks to a higher demand, Pakistan produced a record 6,736 trucks and buses in 2015-16. 40 percent of the market has already been taken over by Chinese truck makers.

Xcient

Hyundai Luxury Universe

Scenes from launch last night

https://www.facebook.com/

 

[Basel]

Hyundai to Set Up Auto Manufacturing Plant in Pakistan

South Korean Auto brand, Hyundai, and Al-Haj group have joined hands to introduce heavy commercial vehicles (HCV) in Pakistan. With an expected investment of around Rs. 4 billion, the company initially plans to assemble trucks and luxury buses.

The joint venture company has already purchased 30 acres of land outside Karachi and is expected to start production within the next 12 months. During the first phase, Al-Haj Hyundai (Pvt) Limited, a separate company of the joint venture, will invest Rs. 1.5 billion. When the two companies agree to move forward, Hyundai will invest in the production plant in 2019.

Al-Haj Hyundai will introduce a bunch of new trucks, buses and light duty vehicles in Pakistan.

Heavy duty truck Xcient will be assembled and sold here.

The South Korean auto maker plans to introduce other cargo and passenger handling vehicles as the production progresses.

Hyundai Global Motors Co Ltd Chairman, Kyung Sik, said that he was confident in the company’s partnership with Al-Haj Group and it will help both players as Pakistan is a huge market with a rapidly growing demand.

Competition Heats Up
Currently, there are four Chinese truck assemblers in Pakistan and have gained 40% of market share in just 10 years while the rest is held by Japanese companies who have been present in Pakistan for decades.

Chinese trucks are cheaper (at Rs. 7.8 million), Japanese are slightly expensive (at Rs. 12.6 million), while European trucks from Volvo go as high as Rs. 16.5 million. Hyundai will launch their vehicles with a price ranging between the Japanese and Chinese brands.

German truck maker, MAN SE, is also expected to set up its plant in Pakistan and other companies have also shown interest in Pakistan hinting at a much more competitive market in the coming years.

About Al-Haj Group
Al-Haj Group has a market presence since 1960 and is already assembling Chinese trucks and passenger cars in Pakistan. Al-Haj CEO, Bilal Khan Afridi, believes that Hyundai chose it as its partner because of the company’s history with heavy vehicles.

Both companies plan to tap into the growing heavy vehicles segment as the China-Pakistan Economic Corridor (CPEC) continues to gain momentum. The company will set up a completely new infrastructure to take advantage of the tax benefits provided with the Auto Policy 2016-21.

Truck sales have rebounded strongly after seven years of below par performance. Thanks to a higher demand, Pakistan produced a record 6,736 trucks and buses in 2015-16. 40 percent of the market has already been taken over by Chinese truck makers.

Xcient

View attachment 398049


Hyundai Luxury Universe

View attachment 398050

Scenes from launch last night

https://www.facebook.com/

Good but why not cars?

 

[Chhatrapati]

Good but why not cars?

Because there is already a plant in India which export cars to Asia, Truck division will be good and Pakistan will be a good market if you give tax exceptions.

 

[volatile]

Because there is already a plant in India which export cars to Asia, Truck division will be good and Pakistan will be a good market if you give tax exceptions.

Similarly plant for Toyota and Honda and Suzuki is also in India

 

[Basel]

Because there is already a plant in India which export cars to Asia, Truck division will be good and Pakistan will be a good market if you give tax exceptions.

Mr. Einstein I m not talking about export here, its about local market, as their brand was popular when Deeean was making cars.

 

[hussain0216]

Because there is already a plant in India which export cars to Asia, Truck division will be good and Pakistan will be a good market if you give tax exceptions.

Yes but we wont allow indian made cars into our market, so if Hyundai wants access to our market it has to import over longer distances or set up a plant in Pakistan

 

[Chhatrapati]

Mr. Einstein I m not talking about export here, its about local market, as their brand was popular when Deeean was making cars.

Yes Mr.Nikola Tesla I clearly understand that, the questioner was asking about cars and I answered it. Your Local market for hyundai cars is minuscule, compared to Pak Suzuki which holds a big share. So, they rely on imported cars.

Yes but we wont allow indian made cars into our market, so if Hyundai wants access to our market it has to import over longer distances or set up a plant in Pakistan

Yeah, right. From India-Dubai-Pakistan. That's the regular sipping route everyone knows.

 

[hussain0216]

Yes Mr.Nikola Tesla I clearly understand that, the questioner was asking about cars and I answered it. Your Local market for hyundai cars is minuscule, compared to Pak Suzuki which holds a big share. So, they rely on imported cars.


Yeah, right. From India-Dubai-Pakistan. That's the regular sipping route everyone knows.

Its hardly anything and being clamped down upon as CPEC and Pakistans own brands step up

 

[Chhatrapati]

Similarly plant for Toyota and Honda and Suzuki is also in India

Suzuki and Toyota manufacture and assemble majority of cars. Suzuki only recently started exporting it.
Compared to Hyundai which is the largest exporter of cars from India.

Its hardly anything and being clamped down upon as CPEC and Pakistans own brands step up

Come on man. Did I start a CPEC discussion? Or did I said anything bad about any of manufacturing plants.

 

[Basel]

Yes Mr.Nikola Tesla I clearly understand that, the questioner was asking about cars and I answered it. Your Local market for hyundai cars is minuscule, compared to Pak Suzuki which holds a big share. So, they rely on imported cars.


Yeah, right. From India-Dubai-Pakistan. That's the regular sipping route everyone knows.

I don't asked any thing from an Indian, because they know nothing about Pakistan and I don't like talking internal issues with enemies of Pakistan, now mind your own business.

 

[volatile]

Compared to Hyundai which is the largest exporter of cars from India.

Pak cant import engines from India rest assure complete car is out of question

"Vendors had been notified earlier about the future of Alto while Pak Suzuki sighted the reason for its suspension that Japan no longer make Alto’s 1000cc engine but India does however, due to lack of free-trade agreement with India, Pak Suzuki cannot import these engines from them."

https://www.pakwheels.com/blog/alto...ntinued-as-pakwheels-reported-six-months-ago/

 

[CSPK]

this means Hyundai will have ventures with two different groups in Pakistan, for commercial vehicles its Al-Haj, for passenger cars its Nishat Group.

 

[ziaulislam]

Good but why not cars?

previous failures plus its looking for new patner in car segement

 

[Basel]

previous failures plus its looking for new patner in car segement

Deewan went down due to miss management not to lack of business opportunities, they had 2 running models.

 

[SHAH820]

Hyundai Motor Company plans to set up a car assembly plant in Pakistan in a joint venture with local textile firm Nishat Mills, an official from Nishat said on Friday.

Hyundai's return to Pakistan will boost the government's efforts to shake up the Japanese-dominated car market and loosen the grip of Toyota, Honda and Suzuki, who assemble cars in Pakistan with local partners.

Hyundai and South Korea's Kia Motor used to assemble cars in Pakistan until 2004 but withdrew after their local partner Dewan Farooque Motors Limited went bust.

It was not clear how much capital Hyundai, South Korea's largest automaker, would itself invest in the Pakistani venture. Representatives for Hyundai could not immediately be reached for comment.
Nishat Mills is a subsidiary of Nishat Group, a giant in the Pakistani banking, textiles, energy and cement sectors. Its share price rose 1.4 percent after the announcement.

“Today we have signed a memorandum of understanding between the two companies and we will set up a ... project for the assembly and sales of both passenger and commercial vehicles,” Nishat Mills company secretary Khalid Chauhan said.

Nishat Mills filed a statement with the Pakistan Stock Exchange saying the deal was “subject to applicable statutory and regulatory approvals”.

Last year, French carmaker Renault agreed to invest in a new factory in Pakistan and South Korean carmaker Kia Motor Co said it would start assembling cars in a joint venture with Karachi-listed Lucky Cement, part of the vast conglomerate Yunus Brothers Group.

The government believes increased competition should bring down exceptionally high car prices in Pakistan, and in March it introduced a new auto policy favouring new entrants into the market by offering generous import duties.

The incentives have angered existing market players, some of whom have said publicly they should get similar terms.

KARACHI: South Korea’s largest automaker Hyundai plans to set up a car assembly plant in Pakistan in collaboration with Nishat Mills Ltd (NML).

The two companies have signed a memorandum of understanding to establish a greenfield project for the assembly and sales of both passenger and commercial vehicles.

In a filing to the Pakistan Stock Exchange on Friday, the textile mill said its board of directors has given the go-ahead to the project, which is subject to applicable statutory and regulatory approvals.

The notice, however, did not give any further details regarding the value of investment, project site, job creation prospects and the year of starting assembly of vehicles.

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An NML official, who asked not to be named, said the company was initially considering starting assembly of car and commercial vehicles in Faisalabad. He said the project’s feasibility was being prepared to ascertain total investment and the year when operations begin. Further discussions would be held with Hyundai in this regard.

Nishat Group of Companies — after venturing into cement, bank and power sectors — will now try its hand at the booming auto sector.

An analyst at Topline Securities estimated the project’s cost at around $150-200 million with a lead time of three years. He said back-of-the-envelope calculations, assuming 50 per cent share of NML in the venture, showed that this would have a positive impact on the company’s bottom line by around 10pc.

He said Pakistan’s car penetration of 13 vehicles per 1,000 people (significantly lower than the regional average of 162) means there is a strong potential for automobile growth. Higher disposable income, low interest rate environment and NML’s hands-on expertise to manage diversified businesses provide a lucrative opportunity for the company to exploit growing local automobile industry.

NML has not disclosed the vehicles’ models it plans to introduce. Pakistanis has already had the experience of using Hyundai Santro Plus 1,000cc and Shehzore pickup introduced by Dewan Motors in 1999-2000.

In its first year of operation in 1999-2000, Dewan assembled and sold 599 and 378 of Santro units which hit peak production and sales of 8,604 and 7,031 units in 2005-2006. Later, financial problems hit the company resulting in turbulence in production in later years.

In 2010-11, the production and sales of 1,000cc model stopped. In 2013-14, Santro came back with production and sales of 210 and 152 units but it could not sustain and its production dropped to nil in 2014-15 with sales of only 50 units.

In 2015-16, only seven units were sold while production was nil. In July-December 2016, there was no production and only one unit was sold in December 2016.

Shehzore met the similar fate. Its production started in 1999-2000 with 1,534 units and sales of 1,429. Its highest production and sales were recorded at 9,368 and 9,234 units in 2005-06. After surviving for a few years, production and sales became zero in 2011-12 and 2012-13.

Shehzore re-entered the market with production and sales of 698 and 680 units in 2013-14, but was not able to sustain it. In 2014-15 and 2015-16 the production remained nil with sales of 10 units each in these two fiscal years. In July-December 2016, there was nil production and sales as compared to only three units produced in July 2015.

Market sources said Pak Suzuki’s Cultus, Alto and Mehran, and Indus Motor’s Daihatsu Cuore led to the exit of Hyundai Santro.

It is not clear how NML plans to compete with old players who have planned to launch new models in the coming years. Lucky Group is also entering the market in partnership with Kia, another automaker from South Korea.


https://www.dawn.com/news/1312528

previous failures plus its looking for new patner in car segement

I don't asked any thing from an Indian, because they know nothing about Pakistan and I don't like talking internal issues with enemies of Pakistan, now mind your own business.

Suzuki and Toyota manufacture and assemble majority of cars. Suzuki only recently started exporting it.
Compared to Hyundai which is the largest exporter of cars from India.


Come on man. Did I start a CPEC discussion? Or did I said anything bad about any of manufacturing plants.

Yes Mr.Nikola Tesla I clearly understand that, the questioner was asking about cars and I answered it. Your Local market for hyundai cars is minuscule, compared to Pak Suzuki which holds a big share. So, they rely on imported cars.


Yeah, right. From India-Dubai-Pakistan. That's the regular sipping route everyone knows.

Because there is already a plant in India which export cars to Asia, Truck division will be good and Pakistan will be a good market if you give tax exceptions.