Nishat Power to Invest in EV Venture
Staff Report
Nishat Power Limited (NPL) has announced an investment of up to Rs2.5 billion in NexGen Auto (Private) Limited, a sister concern focused on electric vehicles (EVs). The development was disclosed in a notice to the Pakistan Stock Exchange (PSX), with an Extraordinary General Meeting (EGM) scheduled for August 13, 2025, to seek shareholder approval.
The investment includes Rs2 billion in equity for acquiring 200 million ordinary shares of Rs10 each in NexGen Auto, along with a Rs500 million working capital loan for one year.CCP Authorizes Nishat Hotels to Acquire Hotel Margala in Islamabad
Terms of Financing
According to the PSX filing, the loan will earn interest at the higher of 3-month KIBOR plus 100 basis points or NPL’s average borrowing cost, with quarterly returns. NPL emphasized that this investment aims to diversify its earnings stream and support its long-term sustainability objectives.
The move comes amid growing momentum in Pakistan’s shift towards alternative energy and green mobility. Other energy giants, such as HUBCO, have also entered the EV infrastructure space by announcing plans to install a nationwide EV charging network.
NexGen Auto’s Progress and Chery Partnership
NexGen Auto, incorporated in August 2024, has already established a technical partnership with China’s Chery Automobile Co. Ltd. The collaboration covers the import, local production, and distribution of Chery’s new energy vehicle brands Omoda and Jaecoo in Pakistan.
NexGen is currently conducting pre-launch marketing campaigns, with a major launch event planned for the first week of August 2025.
Assembly Plant Timeline
he company’s project for complete knock-down (CKD) vehicle assembly is already underway. Commercial operations are expected to begin within the calendar year, while full CKD operations are slated for completion by March 31, 2026.
The total project cost stands at Rs14.7 billion, to be financed through a combination of equity and debt. NPL’s contribution marks a strategic stake in this emerging market, aligning with its broader renewable and energy diversification ambitions.
Market Impact
The entry of NPL into the EV space is expected to accelerate the adoption of electric mobility in Pakistan, especially as Chery’s Omoda and Jaecoo target the SUV and crossover segment. With rising fuel prices and regulatory pressure on emissions, demand for new energy vehicles is likely to grow.
NPL’s investment signals confidence in the viability of EV manufacturing in Pakistan. If NexGen succeeds in its rollout and CKD production, the venture could reshape the competitive landscape of the country’s auto market while offering potential returns through dividend income and capital appreciation.
