PACRA Maintains the Entity Ratings of Hyundai Nishat Motor (Pvt.) Limited

Hyundai Nishat Motor (Pvt.) Limited (HNMPL) operates as a joint venture among the Nishat Group, Sojitz Corporation of Japan, and Millat Tractors Limited. This ownership structure combines the extensive local industrial presence of the Nishat Group with the global automotive manufacturing and trading expertise of Sojitz Corporation. HNMPL remains focused on the assembly and distribution of a premium range of Hyundai branded vehicles in Pakistan, spanning passenger cars, light commercial vehicles, and vans. The company’s product strategy centers on the premium segment, featuring C-segment models such as the Elantra and Tucson, alongside D-segment offerings like the Sonata and Santa Fe. Its commercial portfolio is led by the Porter H100 pickup. In the completely built-up (CBU) category, the company provides advanced electric mobility options, including the IONIQ 5 and IONIQ 6, as well as the Hyundai Staria. To address the increasing market preference for fuel-efficient technology, HNMPL has previously introduced the Santa Fe Hybrid, Elantra Hybrid, and the most recent addition of the Tucson Hybrid. The new Sonata N Line offers further diversity and a competitive advantage. These operational milestones coincide with a period of recovery for Pakistan’s automotive sector. Improving macroeconomic indicators, characterized by exchange rate stability and a reduction in the policy rate, have revitalized consumer demand. According to statistics from the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales reached 84,512 units during 7MFY2026, representing a 45% increase compared to the corresponding period last year. The jeeps and pickups segment also showed a growth of 39%, with sales rising to 26,865 units. In line with these industry trends, HNMPL recorded a 61.6% revenue growth in CY2025. This performance was driven by a 39% increase in sales volume and a favorable shift in the sales mix toward high-value hybrid models. The Tucson Hybrid emerged as the leading model in terms of volume, followed by the Porter and the Elantra Hybrid and others. While top-line growth remained strong, gross and net margins experienced some dilution due to competitive pricing dynamics and input cost movements. HNMPL’s board consists of seasoned professionals with extensive industry expertise, providing strategic guidance and oversight. Supported by a skilled management team, they ensure the efficient execution of the Company's operations. HNMPL's financial risk profile maintains an adequate profile supported by comfortable coverage ratios and cash flows. The company utilizes a leveraged capital structure where short-term borrowings fulfill working capital requirements and long-term debt is utilized for Balancing, Modernization, and Replacement (BMR) initiatives. Looking ahead, HNMPL is positioned to enhance its revenue streams through a toll manufacturing arrangement with its sister concern, NexGen Auto. This collaboration will facilitate the production of Omoda and Jaecoo vehicles, leveraging existing technical infrastructure and creating significant operational synergies such as incremental throughput and support capacity utilization within the Nishat Group automotive vertical.
The ratings are dependent upon sustainability in the Company’s revenue growth, profitability margins, and upholding a strong financial matrix. The ability of the Company’s cash flows to meet the operating expenses of the Company is considered pivotal. Sponsors’ support remains imperative for the ratings.

About the Entity
HNMPL, a private limited company incorporated on March 3, 2017, under the Companies Act, 2017, is jointly owned by Nishat Group (44.14%), SOJITZ Corporation (40.0%), and Millat Tractors Ltd. (15.86%). The board comprises seven members, chaired by Mr. Raza Mansha, with Mr. Hassan Mansha serving as CEO.