Hyundai Nishat Motor (Private) Limited (HNMPL - the Company) is a private limited company incorporated on March 03, 2017, in Pakistan, under the Companies Ordinance, 1984 (now the Companies Act, 2017). The registered office of the Company is situated at 1-B, Aziz Avenue, Canal Bank Road, Gulberg V, Lahore.

Hyundai Nishat Motor (Private) Limited, a Nishat Group Company, is a joint venture among three leading international businesses; Nishat Group, Sojitz Corporation (Japan), and Millat Tractors Ltd. Hyundai Motor Company (Korea) have partnered with Hyundai Nishat for the manufacturing, marketing, and distribution of Hyundai’s product line in Pakistan. The Company aspires to be amongst the leading auto manufacturers in Pakistan in the coming years to align its track record with other sister concerns of the Nishat Group.

The Company's principal activity is to carry out the assembly and distribution of the Hyundai brand vehicles in Pakistan, including passenger cars, light commercial vehicles, vans, and others. HNMPL commenced its production in 2020 with the launch of its first vehicle, the Hyundai Porter. Since then, the Company has steadily expanded its product portfolio, which now comprises a total of 7 products. Currently, the Company has a network of 27 dealerships in 17 cities in Pakistan. The manufacturing facility of the Company is situated in Faisalabad with state-of-the-art machinery.

HNMPL is primarily owned by the Nishat Group, which collectively holds a 44.14% share through its various group companies. Millat Tractors Limited holds a 15.86% stake, while the remaining 40.0% is owned by SOJITZ Corporation.

The ownership structure of the Company is strengthened by the presence of prominent and well-established shareholders, including the Nishat Group, one of Pakistan’s leading business conglomerates; Millat Tractors Ltd., a market leader in agricultural machinery; and SOJITZ Corporation, a key trading partner of Hyundai. Their collective expertise, financial strength, and strategic partnerships contribute to the Company's long-term stability and growth.

The ownership structure of HNMPL benefits from the strong business acumen of the Nishat Group, whose extensive and diverse experience spans multiple sectors, demonstrating a proven track record of strategic growth and financial stability. Additionally, SOJITZ Corporation, one of the company’s major shareholders, is a leading Japanese general trading company with over 30 years of globally recognized expertise in manufacturing and CKD assembly in collaboration with OEMs. This combination of local and international expertise further enhances HNMPL’s operational strength and competitive positioning in the market.

HNMPL benefits from a robust ownership structure backed by financially strong and well-established entities. Nishat Group, one of Pakistan’s most prominent business conglomerates, has a diversified presence across multiple sectors, contributing to its financial resilience. SOJITZ Corporation, a globally recognized Japanese trading and investment firm with extensive expertise in manufacturing and CKD assembling, further strengthens the Company's financial position. Additionally, Millat Tractors, a market leader in agricultural machinery, brings further stability. The collective financial strength of these shareholders provides HNMPL with a solid foundation for sustainable growth, strategic expansion, and resilience against market volatility.

HNMPL's Board of Directors comprises seven members, ensuring a balanced governance structure. The board is chaired by Mr. Raza Mansha and consists of three representatives from the Nishat Group, three from SOJITZ Corporation, and one from Millat Tractors Limited. This composition reflects a strategic blend of local and international expertise, reinforcing strong corporate governance, financial oversight, and strategic decision-making within the Company.

The HNMPL's BOD comprises professionals with extensive industry expertise. Mr. Mian Hassan Mansha, Chief Executive Officer, holds key leadership roles, including CEO of Nishat Hotels and Properties Limited, Nexgen Auto (Pvt.) Limited, and Pakgen Power Ltd. He, along with Mr. Raza Mansha and Mr. Umer Mansha, brings over two decades of business leadership within the Nishat Group. SOJITZ Corporation’s board representatives contribute nearly 30 years of global experience in automobile manufacturing and trading, while Millat Tractors Limited’s representative adds 47 years of industry-specific expertise. This diverse leadership ensures strategic direction and operational excellence for HNMPL.

The Board has a dedicated Audit Committee comprising one representative each from the Nishat Group, SOJITZ Corporation, and Millat Tractors Limited. The committee oversees key company matters, including financial performance, operations, procurement, marketing, and regulatory compliance, ensuring transparency and robust corporate governance.

A.F. Ferguson & Co., a QCR-rated audit firm classified under the 'A' category in the SBP panel, serves as the external auditor of the Company. The firm issued an unqualified opinion on the financial statements for CY24, while the audit for CY25 is currently in progress.

The Company operates with a lean organizational structure, supported by an experienced management team. The Company is structured into key departments, including (i) Sales & Marketing, (ii) Accounts & Finance, (iii) Production, (iv) Procurement, (v) Internal Audit, (vi) IT, (vii) HR, and (viii) Logistics. These departments function under the leadership of the CFO and COO, both of whom report directly to the CEO, ensuring streamlined decision-making and operational efficiency.

Mr. Aqib Zulfiqar serves as the CFO, possessing more than 20 years of experience across various sectors, including telecom and hospitality, contributing to the Company's financial and strategic management.

HNMPL has an established management committee, known as the Admin Steering Committee, which convenes on a need-based basis. Its primary role is strategic and operational decision-making for the Company. The committee comprises the CFO, COO, CSO, and the Head of Human Resources, ensuring high-level oversight and governance. The CFO, Mr. Aqib Zulfiqar, and the COO, Mr. Sohail Nawaz, regularly assess the performance of their respective departments, providing strategic guidance and feedback to enhance operational efficiency.

HNMPL is currently using SAP S4/Hana as its core ERP/Accounting software. This is the latest version of software currently offered by SAP. Some of the processes that they are using include Procure to Pay, Cash to Order, Procure to Production & FI. Furthermore, they are using IFS as their core software for recording Orders, Sales, After Sales & Customer Relationship Management.

The Company has a well-trained quality control department which is responsible for ensuring product quality. HNMPL has three quality standards certifications which include ISO 9001-2015, ISO 14001-2015, and ISO 45001-2018. The Company has an internal audit department at the group level. HNMPL is also subject to surprise visits by Hyundai Motors (Korea) teams to ensure quality control.

Sector profitability improved in FY24 despite lower volumes, as OEMs were able to partially pass on cost increases through higher prices, while internal cost rationalization measures supported margins. Consequently, average gross margins improved to ~10.4% in FY24 (FY23: ~6.0%) and further strengthened to ~13.2% during 9MFY25, supported by higher volumes and lower finance costs amid easing interest rates. Raw materials remain the largest cost component, constituting over ~80% of the cost of sales, thereby maintaining the sector’s sensitivity to global commodity prices and currency movements. The industry operates under the Auto Industry Development and Export Policy (AIDEP) 2021–26, which aims to promote localization, new investments and technological upgrades, including electric vehicles (EVs); however, regulatory uncertainty persists, particularly with respect to tariff rationalization, duties on CBUs and potential changes in the sales tax structure, which may influence demand dynamics. In line with the improving operating environment, recent monthly data from Pakistan Automotive Manufacturers Association shows a sequential improvement in industry volumes, with total passenger car sales increasing to ~18,602 units in January 2026 from ~10,671 units in December 2025, while production volumes rose to ~17,853 units from ~10,735 units over the same period. This sequential improvement largely reflects normalization of production days following year-end shutdowns and improved supply chain availability, indicating continued recovery momentum, although demand remains sensitive to interest rate movements and vehicle affordability.

HNMPL, despite being a relatively new entrant in Pakistan’s automobile assembling sector, has established its presence by introducing seven models over the past five years, reflecting an aggressive product rollout strategy. The Company operates in a highly competitive environment dominated by well-established OEMs, while also facing increasing competition from Chinese brands, particularly within the SUV segment. Notwithstanding these challenges, HNMPL has gradually strengthened its foothold in the domestic market, supported by diversification of its product portfolio across sedan and SUV categories. On a volume basis for 7MCY25, Pak Suzuki Motor Company leads the market with an approximate 50% share, followed by Toyota Indus Motor Company with ~20%, Honda Atlas Cars with ~12%, while HNMPL holds a market share of ~6.8%. Although HNMPL’s share remains modest relative to incumbents, its presence reflects gradual acceptance of its product offerings in a market characterized by brand loyalty and price sensitivity

HNMPL’s topline demonstrated a robust year-on-year growth of 61.6% in CY25 , reaching PKR 106,592 mln compared to PKR 65,978 mln in CY24. This significant surge in revenue reflects a strong recovery in market demand and the company's ability to scale operations effectively within the local automotive sector.

The Company’s gross margin experienced a slight contraction to 6.9% in CY25, down from 7.4% in CY24. Despite the pressure at the gross level, the operating profit margin improved to 4.3% (CY24: 3.5%), aided by a significant increase in non-operating income, which rose to PKR 1,399 mln. Consequently, the net profit margin remained relatively stable at 1.8%, yielding a net income of PKR 1,891 mln for the year compared to PKR 1,398 mln in the previous year.

HNMPL has strategically expanded its product portfolio, offering a diverse range of passenger cars, SUVs, and light commercial vehicles to cater to a broad customer base. The Company continues to strengthen its dealership network and has introduced Pakistan’s first locally assembled 7-seater HEV. Additionally, the recent launch of the Elantra hybrid and Sonata turbo, equipped with advanced features, is reshaping Hyundai Nishat’s brand positioning in the competitive automobile market. To enhance financial sustainability, HNMPL is actively working towards reducing its debt burden, which is expected to lower finance costs and improve overall financial stability.

The Company’s gross working capital cycle moderated marginally to 123 days in CY25 from 119 days in CY24, primarily driven by a significant improvement in inventory management. Inventory holding days declined to 98 days from 113 days, reflecting lower finished goods days despite a slight increase in raw material holding. However, this improvement was partly offset by an elongation in trade receivable days, which increased to 24 days from 6 days in the previous year. Net working capital days improved modestly to 104 days in CY25 from 107 days in CY24. Meanwhile, short-term trade leverage declined sharply to 32.6% from 74.0%, indicating reduced reliance on short-term trade financing to support working capital requirements.

HNMPL’s Free Cash Flow from Operations (FCFO) stood at PKR 9,580 mln in CY25, a significant increase from PKR 7,083 mln in CY24. This growth in cash flow helped maintain the FCFO-to-finance cost ratio at 2.9x, although this is a decrease from the 3.7x seen in CY24. The total finance cost rose to PKR 3,741 mln, driven by increased interest expenses. Despite the higher cost of borrowing, the debt payback period improved to 1.6 years in CY25 from 2.2 years in CY24, suggesting that the company's strengthened cash generation is providing a better cushion for debt servicing.

The Company's leverage ratio increased significantly to 68.4% in CY25, up from 40.0% in CY24, marking a shift toward a more debt-heavy capital structure. This was characterized by a dramatic surge in total borrowings, which reached PKR 48,087 mln. There was a notable shift in the borrowing mix as short-term borrowings rose to represent 78.5% of the total debt portfolio, compared to only 19.4% in the previous year. While long-term borrowings remained relatively stable at PKR 9,444 mln, the heightened reliance on short-term credit lines suggests a greater need for liquidity to fund the expanded scale of operations.