The year was 1998, and Dewan Group had already cemented itself as a formidable force in multiple industries, from textiles to cement. But for **Dewan Mohammad Yousuf Farooqui**, there was still one untapped frontier—the **automobile industry**. He envisioned a Pakistan where locally assembled cars were affordable, reliable, and widely available. This vision laid the foundation for **Dewan Motors**.
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### **A Vision Takes Shape**
In a sleek conference room at the **Dewan House in Karachi**, Yousuf sat at the head of the long mahogany table. Around him were his closest advisors: **Salman Farooqui (COO)**, **Nadia Hussain (CFO)**, **Sikandar Mehmood (Head of Operations)**, and key strategists. The air was thick with anticipation.
Yousuf cleared his throat and spoke, his voice brimming with determination. **"The future of Pakistan lies in industrialization. We have the resources, the expertise, and now, the perfect opportunity to establish ourselves in the automobile sector. It's time we take this step."**
Salman leaned back, tapping his fingers on the table. **"It's a massive undertaking. Entering the auto sector isn't like textiles or cement. The investment, the competition, the technology—it's all on a different level."**
Nadia nodded in agreement. **"We'll need strong international partnerships. We can't afford to start from scratch."**
Yousuf smiled, sliding a document across the table. **"Which is why I have been in talks with Hyundai and Kia. They're willing to work with us under a licensing agreement. If we do this right, we won't just be assembling cars; we will be creating a legacy."**
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### **The Hyundai and Kia Partnership**
Over the next few months, negotiations between Dewan Group and **Hyundai Motor Company and Kia Motors** took place in **Seoul, South Korea**. The South Korean executives were skeptical at first, but Yousuf's business acumen and Dewan Group's impressive track record won them over.
At a high-profile meeting in Seoul, **Hyundai's CEO, Chung Mong-koo**, looked across the table at Yousuf.
**"Mr. Dewan, entering a new market is never easy. What makes you confident that Dewan Motors can succeed where others have struggled?"**
Yousuf leaned forward, his gaze unwavering. **"Pakistan is on the verge of economic expansion. The middle class is growing, and there is an increasing demand for reliable and affordable vehicles. We have the infrastructure, the workforce, and the determination to make this work. Give us the technology, and we will deliver the market."**
After several intense sessions, an agreement was signed: **Dewan Motors secured exclusive rights to assemble and distribute Hyundai and Kia vehicles in Pakistan**.
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### **Building the Assembly Plant**
With the deal finalized, the next challenge was infrastructure. Dewan Motors broke ground for a **state-of-the-art automobile assembly plant in Sujawal, Sindh**. The facility would be one of the most advanced in the region, equipped with robotic assembly lines, automated quality control systems, and training centers for local engineers.
During a site visit, Sikandar Mehmood walked alongside Yousuf, watching cranes lift steel beams into place.
**"This will change everything,"** Sikandar said. **"We are not just assembling cars; we are creating an industry."**
Yousuf nodded. **"We are investing in Pakistan's future. This plant will provide thousands of jobs, develop local expertise, and pave the way for an independent auto sector."**
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### **The First Model: Hyundai Santro**
By **2000**, Dewan Motors was ready to introduce its first vehicle—the **Hyundai Santro**. Designed for urban families, the compact hatchback combined affordability with reliability.
The launch event at the **Pearl Continental Hotel in Karachi** was packed with media, industry experts, and government officials. As the curtain lifted, the sleek silver Santro was unveiled, and the audience erupted in applause.
Yousuf took the stage. **"Today, we are not just launching a car; we are launching a movement. A movement towards self-sufficiency, progress, and a thriving automobile industry in Pakistan."**
The first batch of **10,000 Santros sold out within months**, proving that Dewan Motors had struck a chord with consumers.
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### **Market Challenges and Competition**
Despite the initial success, Dewan Motors faced resistance. **Suzuki and Toyota**, the dominant players, saw Dewan Motors as a threat. They lobbied against favorable policies for new entrants, while **banks were hesitant** to provide auto financing for Hyundai Santro buyers.
In a tense meeting with the **State Bank of Pakistan**, Yousuf fought for equal opportunity.
**"Competition is the backbone of a healthy economy. We are here to provide choices, create jobs, and drive industrial growth. It is in the nation's best interest to support local manufacturing."**
Slowly, barriers began to break. **Bank Alfalah and HBL introduced auto financing for Hyundai and Kia models**, and government incentives for local manufacturers increased.
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### **Expanding the Portfolio**
Buoyed by the Santro's success, Dewan Motors expanded its lineup:
- **Kia Spectra (2001):** A mid-sized sedan that competed with Honda Civic.
- **Hyundai Shehzore (2002):** A commercial pickup that became a favorite in Pakistan's transport industry.
- **Kia Sportage (2004):** An SUV targeting upper-middle-class buyers.
With each new launch, Dewan Motors gained traction, becoming a formidable name in the industry.
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### **Economic Downturn and the Fall of Dewan Motors**
The mid-2000s brought **economic instability**. Rising inflation, a depreciating rupee, and government policy shifts **shook the auto sector**. Dewan Motors struggled as supply chain disruptions and financial challenges mounted.
In **2008**, a final board meeting sealed the fate.
Salman looked around the room, his voice heavy. **"We've exhausted all options. We have no choice but to suspend operations."**
Yousuf remained silent for a long moment before exhaling. **"This is not the end. We will return when the time is right."**
In **2010, Dewan Motors ceased production**, marking a temporary exit from the industry. Employees were laid off, and the once-thriving plant stood still.
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### **A Legacy in Motion**
Though operations had halted, the dream of **Dewan Motors never died**. By **2016**, with Pakistan's economy stabilizing, whispers of a **revival** began.
In a private conversation with a former Hyundai executive, Yousuf smiled.
**"We stumbled, but we didn't fall. The next chapter is just waiting to be written."**
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### **Conclusion**
Chapter 14 tells the **story of Dewan Motors** from its ambitious inception to its unfortunate halt. It was a journey filled with triumphs, setbacks, and unyielding resilience, setting the stage for a future revival. The birth of Dewan Motors was more than a business endeavor; it was an **industrial revolution in Pakistan's auto sector**.