ISLAMABAD, Dec. 16 (Xinhua) -- South Korean car manufacturing company Hyundai Motor Company is all set to enter Pakistani auto market next week, the company said in a statement issued at the Pakistan Stock Exchange (PSX).
Hyundai is constructing an auto plant in the port city of Karachi in collaboration with Nishat Mills Limited and the two companies have named the joint venture as Hyundai Nishat Motor, the statement said Friday.
Hyundai Nishat Motor has signed an investment agreement with the Pakistani government to assemble and market passenger and commercial vehicles in the country.
The auto plant's ground-breaking ceremony will be held on Dec. 20 in Karachi. The company will manufacture one-ton vehicles in the plant which is likely to get tax holiday under the country's current auto policy.
The Nishat Mills Limited, Hyundai Motor Company and Sojitz Corporation Japan had signed the agreement on Feb. 3 this year for establishing a framework for building a green field project for the auto plant's assembly and sales of passenger and commercial vehicles in Pakistan.
The company is expected to invest around 400 to 500 million U.S. dollars on the project.
The Pakistani government had rolled out its Automobile Development Policy 2016-2021 in March last year, which was designed to offer various incentives for foreign automakers to enter the local auto market. The incentives also included a reduced tax on imported spare parts of the vehicles.