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 25 dealerships in 16 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, including one executive and six non-executive directors, ensuring a balanced governance structure. The board is chaired by Mr. Mian Hassan 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, Chairman of the Board, holds key leadership roles, including CEO of Nishat Hotels and Properties 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 CY23, while the audit for CY24 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. Masaaki Yamada, a law graduate, was appointed as the CEO of HNMPL. With over two decades of experience, he brings extensive leadership and industry expertise to the Company. 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 frequency. Its primary role is strategic and operational decision-making for the Company. The committee comprises the CEO, CFO, and COO, 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.

The passenger car segment, including Jeeps and Pick-ups, experienced an 18% decline in volumetric sales during FY24, with total sales dropping to 103,829 units from 126,878 units in the previous year. This decline was primarily driven by a sharp increase in KIBOR, which adversely affected car financing, coupled with the devaluation of the PKR, leading to higher vehicle prices. Additionally, economic recession and inflationary pressures weakened consumer purchasing power, further dampening demand. Elevated energy and raw material costs, along with increased expenses for imported CKDs, also contributed to profitability constraints However, during the first half of FY25, Pakistan’s automotive sector has witnessed significant growth, driven by improvements in macroeconomic conditions, including exchange rate stability, lower policy rates, and reduced inflation. According to the latest statistics from the Pakistan Automotive Vehicle Manufacturing Association (PAMA), the passenger car segment recorded sales of 58,266 units, reflecting a remarkable 52% increase during 7MFY25 (July 2024 to January 2025) compared to the same period last year. The Jeeps & Pickups segment also exhibited substantial growth of approximately 67%, with 19,301 units sold, up from 11,525 units in 7MFY24. Looking ahead, the industry is expected to benefit more from reduction in the policy rate, which could support demand recovery and improve market dynamics.

HNMPL, being a new entrant in Pakistan’s automobile assembling sector, has made significant strides by introducing seven products within a short span of five years. Despite facing intense competition from established OEMs and the growing presence of Chinese brands, particularly in the SUV segment, the Company has consistently improved its market share. But, if we look at market share volume wise for the period 7MCY25, Suzuki is leading the market with 50% share, followed by Indus Toyota with 20% share, Honda Atlas with 12% share and  Hyundai Nishat stands at 6.8%. 

HNMPL’s topline demonstrated an year-on-year growth of 27.1% in CY24, reaching PKR 66,260 mln compared to PKR 52,138 mln in CY23. This growth was driven by a 11% increase in sales volume, with 9,700 units sold in CY24 compared to 8,720 units in CY23. Additionally, strategic price adjustments contributed to the improved revenue, reinforcing the company’s ability to navigate market dynamics effectively.

HNMPL’s gross margin declined to 7.1% in CY24 from 8.6% in CY23, mainly due to the increased cost of sea freight. However, the Company’s net profit margin improved to approximately 2.5% in CY24, up from 2.2% in CY23. This increase was largely driven by a reduction in exchange losses, benefiting from the relative stabilization of the PKR during the period.

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 days declined to 123 days in CY24 (148 days, CY23), while net working capital days also improved to 104 days in CY24 (134 days, CY23). This reduction was primarily driven by improved inventory turnover, which had previously been on an upward trend. The Company's decision to optimize inventory levels following the easing of import restrictions and PKR stabilization contributed to this improvement, ensuring a more efficient working capital cycle.

HNMPL’s Free Cash Flow from Operations (FCFO) stood at PKR 6,086 mln in CY24, compared to PKR 7,001 mln in CY23, primarily due to a marginal decline in EBITDA. As a result, the FCFO-to-finance cost ratio slightly decreased to 3.2x in CY24 (from 3.4x in CY23).Finance costs decreased to PKR 2,163 mln in CY24 (2,248 mln, CY23) due to improved KIBOR. However, with anticipated reductions in policy rates, the Company’s coverage ratios are expected to improve more in the future.

The Company's leverage ratio increased to 39.6% in CY24, up from 37.4% in 6MCY24 (but slightly lower than 40.1% in CY23), primarily due to a shift in its borrowing mix. Short-term borrowings saw a notable increase, rising to 19.5% of total borrowings (compared to 7% in 6MCY24 and 8.4% in CY23), indicating a greater reliance on short-term financing. Conversely, long-term borrowings declined to PKR 9,745 million (PKR 10,270 million in 6MCY24, PKR 10,706 million in CY23), reflecting a move toward shorter-maturity obligations. Effective liquidity management will be critical to maintaining financial flexibility and ensuring sustainable debt servicing.