Hyundai to start local production from January

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.

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.

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.