Nishat Power Limited has announced a Rs2.5 billion investment plan in NexGen Auto (Private) Limited, a company focused on electric vehicles. The investment will be presented for approval in an Extraordinary General Meeting scheduled for August 13, 2025. In a disclosure to the Pakistan Stock Exchange, Nishat Power confirmed that the proposed investment will comprise Rs2 billion in equity through the acquisition or subscription of 200 million ordinary shares at Rs10 each, along with a Rs500 million one-year working capital loan.
The loan component will carry a return calculated as the higher of the 3-month KIBOR plus 100 basis points or the average borrowing cost of the company, with payments to be made quarterly. Nishat Power classified NexGen Auto as a related company, indicating the investment will enhance synergy between group entities and support emerging business lines aligned with long-term sustainability goals.
NexGen Auto was incorporated in August 2024 and has since been preparing for its market entry. The company has signed a formal partnership agreement with Cherry Automobile Co. Ltd of China. Under this collaboration, NexGen will handle the import, local production, and national distribution of two Cherry sub-brands, Omoda and Jaecoo, both designed as new energy vehicles aimed at the EV segment in Pakistan.
According to Nishat Power’s communication with the stock exchange, NexGen’s pre-launch marketing activities are already underway. A large-scale launch event has been scheduled for the first week of August 2025 to introduce the brands officially to the market. Parallel to the marketing efforts, the company has started working on its CKD assembly project, which is targeted for completion by March 31, 2026. The timeline for commercial operations is expected to fall within the same calendar year.
The total cost of the NexGen Auto project stands at approximately Rs14.7 billion, which will be financed through a combination of equity and debt. Nishat Power anticipates that its investment will generate long-term returns in the form of capital appreciation and dividend income while also contributing to diversification of its portfolio.
The company stated that the move reflects a strategic shift to align with the growing demand for sustainable transportation and energy-efficient technologies. NexGen Auto’s entry into the market, supported by Nishat Power’s financial backing and Cherry’s manufacturing expertise, signals growing momentum for EV adoption in Pakistan. The launch of Omoda and Jaecoo as local offerings is expected to contribute to the development of the EV ecosystem in the country, with infrastructure, production, and after-sales services expanding alongside.
Nishat Power views the venture as both a business opportunity and a step toward strengthening its presence in cleaner energy and green mobility sectors.
