Pakistan’s electric vehicle (EV) landscape is set for a major boost as NexGen Auto — a subsidiary of the Nishat Group — has begun production at its new EV assembly plant months ahead of schedule. The early launch signals accelerating investor confidence in the country’s emerging EV market and positions NexGen Auto among the most anticipated new entrants in Pakistan’s automotive sector.

The development was revealed during a corporate briefing session of Nishat Power Limited (NPL) on Tuesday. According to Zayan Babar, Investment Analyst at Arif Habib Limited (AHL), the EV assembly facility was originally scheduled to begin operations in March 2026. However, the plant has already started production in November 2025, marking a significant head start for the company and the market alike.

Strategic Investment from Nishat Companies

During the corporate briefing, NPL’s management confirmed a long-term investment plan of up to Rs. 2 billion into NexGen Auto (Private) Limited. Through this capital injection, NPL will acquire a 33% equity stake, translating into 200 million subscribed shares of the company. This strategic move is aimed at diversifying revenue streams and tapping into the high-growth EV sector.

“Management expects this move to enhance the company’s long-term value and profitability by entering the growing automotive sector,” Babar noted in his briefing summary.

Parallel to NPL’s investment, Nishat Chunian Power Limited (NCPL) also disclosed a Rs. 2 billion long-term investment in NexGen Auto during its own corporate briefing session. NCPL’s leadership highlighted that the EV plant will integrate closely with Hyundai’s existing assembly line — a synergy expected to streamline production, reduce operational costs, and accelerate the rollout of new EV models.

The company forecasts that shareholders will begin receiving dividends from NexGen Auto by FY28, once the business reaches stable production and market penetration.

Assembly of Jaecoo and Omoda EV Models Begins

NexGen Auto’s production facility — located adjacent to Hyundai Nishat’s assembly plant — has already begun assembling two highly anticipated models:

• Jaecoo Plug-In Hybrid (PHEV)
• Omoda E5 Fully Electric Vehicle (EV)

Both models have gained strong interest from Pakistani consumers thanks to their modern design, competitive features, and the rising demand for hybrid and electric mobility options.

Industry sources indicate that approximately 2,000 vehicles have already been booked, with about 20% advance payments received — an unusually strong response for a brand yet to debut its first locally assembled units. According to Babar, several units have already reached the paint shop, and deliveries of CKD units are expected to begin by mid-December 2025.

This timeline places NexGen ahead of many competitors trying to enter the EV space, and could allow it to capture early market share in Pakistan’s rapidly evolving automotive sector.

Related: Sazgar to Begin Local Production of New Vehicles Soon

Production Capacity and Operational Ambitions

The newly operational plant boasts an impressive annual production capacity of 32,000 units. When run on a double-shift schedule, it can produce up to 2,667 vehicles per month, while a single-shift operation offers half of that output.

Such capacity positions NexGen Auto as a serious contender in Pakistan’s automotive manufacturing ecosystem — one capable of meeting both initial demand and future market expansion.

Government Policy and Profitability Outlook

While management acknowledged that government concessions — often extended to encourage local EV manufacturing — may temporarily impact profitability, long-term returns for shareholders remain a central expectation. The company is betting on:

• growing public interest in electrified vehicles
• rising environmental awareness
• declining fuel affordability
• and policy incentives supporting EV adoption

These factors collectively strengthen the business case for NexGen Auto’s early market entry.

NCPL management added that the integration with Hyundai’s plant and the imminent launch of the first locally assembled Jaecoo and Omoda vehicles will likely generate strong demand and establish brand confidence.

A Boost for Pakistan’s Auto Industry

NexGen Auto’s early production launch marks a significant milestone for Pakistan’s automotive sector, which is gradually transitioning toward electrification. Early investors, a fully functional assembly line, secured bookings, and an accelerated timeline all point toward a promising start for the Jaecoo and Omoda EV lineup.

As the company prepares for its first deliveries in December, market analysts believe NexGen has the potential to become one of Pakistan’s most influential EV manufacturers — especially if supportive policies and consumer demand continue to align in its favor.