The depreciation of the local currency raised freight expenses, and rising raw material costs forced automakers to raise their vehicle pricing. A solution to this problem may have been provided by one of the automobile groups.
Mian Mohammed Mansha, the owner of Hyundai Nishat Motors Private Limited (HNMPL), claimed in an interview with The Indian Express that importing auto components from India might benefit the Pakistani car sector.
He stated that:
Hyundai in India
Hyundai is one of India’s leading automotive firms, producing a wide range of wholly indigenous automobiles. In India, the firm has three production units with a combined capacity of 740,000 automobiles per year.
Hyundai Tucson is now the sole passenger car shared by both Hyundai Motor India and HNMPL. Hyundai Tucson prices in India start at INR 2.27 million (5.47 million PKR) and go up to INR 2.74 million (6.6 million PKR). Although the Tucson costs less in Pakistan than it does in India, the latter offers more variations, each with greater features.
Pakistani Auto Policy
Pakistan’s most recent car policy pushes automakers to gravitate toward local vehicle production. It aspires to build a totally indigenous automobile sector, similar to that of India, in order to cut import costs and strengthen the domestic industry.
To carry out local assembly of their cars, automakers continue to rely on Completely Knocked Down (CKD) kits supplied from overseas. This type of business strategy is more vulnerable to logistics costs and volatile local currencies.
HNMPL appears to be unwilling to pursue indigenous automobile manufacture in Pakistan, based on its owner’s recent statements.