KARACHI: Japan based trading company Sojitz Corporation and textile giant of Pakistan Nishat Mills Limited (NML) are all set to launch manufacturing operations of Hyundai vehicles in Pakistan with estimated investment of JPY 15 billion ($136.5 million). Sojitz, on Wednesday, has announced that the company, along with NML has entered the assembly, wholesale, and retail business for Hyundai vehicles in Pakistan. The joint venture will produce HMC passenger cars and 1-ton range commercial vehicles in Pakistan. The Japanese conglomerate said that 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 percent market share by 2024. NML and its associates, 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 along with Sojitz. 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. 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 percent. The country’s automotive market is forecast to expand further thanks to rising numbers of consumers, added the company. 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, added the company. Representative Director of the company in Pakistan is Hasan Mansha while ownership consists of Sojitz Corporation with 40 percent stake, MTL with 18 percent, NML with 12 percent, associates of NML with 30 percent, Adamjee Insurance Co. Ltd with 10 percent, Security General Insurance Co. Ltd. with 10 percent and D.G. Khan Cement Co. Ltd.?with 10 percent. The Sojitz Group consists of approximately 400 subsidiaries and affiliates located in Japan and throughout the world, developing wide-r As a general trading company, the Sojitz Group is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and planning and coordinating projects, in Japan and overseas. Published in Daily Times, June 7th 2018.