Pakistan Approves Three Carmaking Ventures

Pakistan’s ministry of industry and production has granted three joint ventures worth a combined $372 million to launch local car production in the country as early as next year.

The projects are the first phase of a government plan to expand the country’s annual new-car market to 500,000 units by 2025 from 218,000 last year. Suzuki Motor Corp. currently controls 58% of the Pakistani market, which has been dominated by Japanese brands.

The largest of the new ventures teams South Korea’s Kia Motors Corp. with major Pakistani cement exporter Lucky Cement Ltd. Their $190 partnership aims to begin assembling a range of Kia models at a factory in Karachi by the end of 2018. Lucky Cement will own 60% of the business, which targets annual output of 25,000 vehicles.

Hyundai Motor Co., which owns Kia, is launching a $164 million assembly venture with Pakistani multi-industry conglomerate Nishat Group. Nishat said in March it aims to introduce an array of electric and hybrid cars. The companies plan to erect an assembly plant in Faisalabad but have not released further details.

The industry ministry says a third carmaking venture will pair Lahore-based vehicle importer United Motors (Pvt) Ltd. with an undisclosed Chinese company in an $18 million carmaking alliance.