Pakistani tycoon joins hands with Chery, to set up EV factory

Pakistani business magnate Mian Mohammad Mansha is setting up a factory to build electric-powered vehicles in partnership with one of China’s largest car exporters, Chery Automobile Co., according to a top executive at his company.

NextGen Auto Pvt., a unit of Pakistan’s Nishat Group, plans to debut five cars simultaneously under Chery’s Omoda and Jaecoo brands at a launch event on Friday, Muhammad Aqib Zulfiqar, the group’s chief financial officer, said in an interview. The conglomerate has earmarked about $100 million for the automotive manufacturing and marketing operations, with local car assembling set to start in October, he said. 

Calling the move a “no brainer”, Zulfiqar said Nishat Group seized on the opportunity to work with Chery after company officials visited China and met with several different car manufacturers.

“In this category, China is much ahead of all other manufacturing hubs in the world when it comes to advancements and cost,” he said.

More than half a dozen auto companies, led by Chinese brands, have launched EV models in Pakistan since last year. BYD Co., China’s leading carmaker, plans to start production in the South Asian nation next year with a local partner, joining automakers already competing in Pakistan such as Shanghai Automotive Industry Corp.  

A representative for Chery didn’t immediately respond to a request for comment.

The Nishat conglomerate’s business operations in Pakistan extend from cement production and garment manufacturing to financial services, but it’s eager to expand in the automobile sector, Zulfiqar said. The group began selling Hyundai Motor Co. cars in 2017, and now has one of the largest range of vehicles available in Pakistan. 

The Pakistani government plans to boost EVs to 30 percent of total sales, imports and production by 2030 and has pledged to reduce electricity prices at EV charging stations nationwide. 

Nishat Group wants authorities in Islamabad to speed up the implementation of policies designed to actively promote EV adoption, Zulfiqar said, including granting more licenses for charging stations.   

“The new model that we have seen is new energy vehicles,” he said. “Leaving it open and letting competition run free was not wise.”