Automotive industry in Pakistan

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Toyota Indus's Corolla is the most manufactured car in Pakistan. In 2017, 52,874 models were made.

The automotive industry in Pakistan is one of the fastest-growing industries in the country, growing by 171% between just 2014 and 2018. It accounts for 3% of Pakistan's GDP and employs a workforce of over 3.5 million people as of 2018.[1] Pakistan is the 35th largest producer of automotives.[2] Its contribution to the national exchequer is nearly ₨50 billion (US$310 million). Pakistan's auto market is among the smallest, but fastest-growing in Asia.[citation needed] 269,792 cars were sold in the year 2018, but declined to 186,716 in 2019 as a result of austerity measures.[3] At present, the auto market is dominated by Honda, Toyota and Suzuki. However, on 19 March 2016, Pakistan passed the "Auto Policy 2016-21", which offers tax incentives to new automakers to establish manufacturing plants in the country.[4][5] In response, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen,[6] FAW[7] and Hyundai[8] have expressed interest in entering the Pakistani market.[9][10] MG JW Automobile Pakistan has signed Memorandum of Understanding (MoU) with Morris Garages (MG) Motor UK Limited, owned by SAIC Motor to bring electric vehicles in Pakistan.[11][12][13][14][15] NLC signed an agreement with Mercedes Benz for the manufacturing of Mercedes Actros trucks in Pakistan. Pakistan has not enforced any automotive safety standards or model upgrade policies. A few old models of vehicles including the Bolan and Ravi continue to be sold by Suzuki.[16] On 8 July 2021, launched production of electric motorcycles.[17]

Government of Pakistan will soon announce a five year policy between 2021-26 to raise the production capacity of autombile in Pakistan. On 20 October, the Pakistani envoy to China said during the meeting with 50 Chinese automotive brands, that Pakistan will increase its automobile production to 6-8 million units in next five years. Pakistan is building special economic zones, where Chinese companies are setting up their businesses. In that meeting, 10 Chinese and Nasla automotive companies got ready to invest in Pakistan.

History[]

See also: Industry of Pakistan

Early years (1950–1969)[]

Pakistan produced its first vehicle in 1953 at the plant in Karachi. The plant was opened in conjunction with General Motors who arranged the facilities for the production of Vauxhall cars and Bedford trucks. Later, buses, light trucks, and cars were assembled at the same plant. In the same year, Ford trucks partnered with where they introduced the Ford Anglia, Ford pickups and the Ford Kombi. Exide Pakistan also began the production of car batteries in 1953. partnered with Dodge Motors in 1956.[18]

In 1961, introduced precision auto parts to the Pakistani auto market. In 1962, Lambretta partnered with to begin production of the Lambretta TV200 scooter while Kandawala Industries introduced the CJ 5, CJ 6, CJ 7 series Jeep. In 1963, General Tyre Pakistan began production in Karachi while began production of Mack Trucks. In 1964, Rana Tractors began producing Massey Ferguson Tractors while the famous Vespa scooter and rickshaw were introduced by . In 1965, and began operations.

Nationalisation (1970–1989)[]

The 1970s saw nationalization of many companies. In 1972, the Pakistan Automobile Corporation (PACO) was formed. Many companies were bought out or merged into others. was renamed to , to , to , to , to Mack Trucks, Kandawala Industries to Naya Daur Motors, to and Rana Tractors to Millat Tractors. Dawood Yamaha introduced Yamaha motorcycles in 1974 and in the same year started producing diesel engines. In 1976, launched by . launched Kawasaki motorcycles in 1977 while Suzuki Jeep was manufactured by Naya Daur Motors.

In 1980, Awami Motors began manufactured Suzuki pickups while began producing Mazda Trucks. In 1981, Agriauto Industries introduced production of local auto parts while in 1982, Pak Suzuki began production of vehicles. In 1983, the Vendor Development & Technical Cell or VDTC was formed along with Al-Ghazi Tractors which was introduced by Fiat. In 1986, Hinopak Motors began as a joint venture between PACO, Al-Futtaim Group, Hino Motors & TTC. In 1987, Ghandhara Nissan began production of Nissan Diesel Trucks. In 1989, Pakistan Association of Auto Parts & Accessories Manufacturers began operation.

Deregulation (1990–2009)[]

The industry was highly regulated until the early 1990s. Following deregulation, the decade witnessed a huge boom in auto production, as nationalization was abandoned in favor of privatization. Japan acquired the 40% shares of Pak Suzuki in 1991. In 1993, the Indus Motors Company began production of Toyota Corollas. In 1994, the Pakistan Automotive Manufacturers Association formed, and Honda Atlas introduced manufacturing of the Honda Civic. In 1995, the Engineering Development Board inaugurated the PAP show.

From 2001 to 2007, small assemblers and many bike importers started assembling replicas of the Honda CD70 with Chinese collaboration and established the Association with of Pakistan Motorcycle Assemblers namely, Association of Pakistan Motorcycle Assemblers (APMA) and Mr. Muhammad Sabir Shaikh who started Chinese Based replica's was the First Chairman of the APMA in 2002. After 2003, annual production of motorcycles increased at record rates, reaching a peak of 195,688 sales in 2007 and in 2015 Production Crosed 2.5 milluon units annually. During this period began local assembly of Daewoo buses and trucks under license from Daewoo Bus, South Korea and Tata Daewoo. Thanks to rising car financing up to 70–80% by banks and low interest rates coupled with rising rural purchases. From 2007 to 2009, the auto sector witnessed reduce sales amid high interest rates and yen appreciation against the rupee. In 2007, the automotive industry made up 2.8% of Pakistan's GDP and contributed 16% to the manufacturing sector. The 2000s also saw the introduction of dual fuel options to run both on petrol and CNG, which is more affordable and cheaper than petrol in the country.

Rapid growth (2010–present)[]

In 2010, auto sales rebounded and began increasing again. The auto industry predicted a growing demand in Pakistan and invested over ₨20 billion (US$120 million) during this decade. Motorcycle production hit a record level in 2016–17, with 2.5 million units made. In 2015, the Auto Policy 2016-21 was introduced, to help lure new automakers, which has traditionally been dominated by Honda, Toyota and Suzuki. The auto industry remains the second-largest payer of indirect taxes after the petroleum industry in Pakistan. At present, there are 10 cars for every 1,000 people in Pakistan. This is one of the lowest ratios among emerging economies, which itself speaks of high potential of growth. Rising per capita income with changing demographic distribution and an anticipated influx of 30 to 40 million young people in the economically active workforce in the next decade will provide a stimulus to the industry to expand and grow, alongside the drastic increase in the middle class.[19] Toyota started local assembly of its sedan Corolla. Similarly, United Motors started the first locally made car. Ghandhara Nissan started the production of Isuzu d-max in Pakistan.

Historical production by year[]

Automobiles[]

Historical production by year[20]
Year Production
1994
61,000
1995
44,000
1996
78,419
1997
41,585
1998
43,519
1999
46,761
2000
39,117
2001
46,538
2002
48,579
2003
74,274
2004
112,550
2005
150,016
2006
189,639
2007
195,688
2008
186,064
2009
100,468
2010
137,415
2011
153,114
2012
175,184
2013
134,849
2014
148,746
2015
229,686
2016
274,536
2017
285,248
2018
342,575
2019
298,083

Motorcycles[]

Historical production by year[20]
Year Production
1997
106,797
1998
92,978
1999
87,504
2000
86,959
2001
108,850
{{{label11}}}
467,267
2008
660,593
2009
509,054
2010
736,861
2011
838,665
2012
828,576
2013
819,556
2014
771,507
2015
1,131,196
2016
1,362,096
2017
1,632,965
2018
1,931,340

Automotive manufacturers in Pakistan[]

Active brands[]

Local manufacturers[]

Foreign assemblers & joint-ventures[]

Former brands[]

Automotive distributors in Pakistan[]

Various car and motorcycle companies are in various stages officially available & serviced in Pakistan. Some are mentioned below:-

See also[]

References[]

  1. ^ "Automotive Industry's Contribution to Pakistan [Infographic]" (PDF). Punjab Board of Investment and Trade. January 2018. Archived (PDF) from the original on 27 September 2021.
  2. ^ , Wikipedia, 2021-07-29, retrieved 2021-09-27
  3. ^ "2019 Statistics | www.oica.net". www.oica.net. Retrieved 2021-09-27.
  4. ^ "Auto policy" (PDF). boi.gov.pk. Archived from the original (PDF) on 2017-03-17. Retrieved 2020-06-10.
  5. ^ "Auto policy approved, door wide open for new entrant - The Express Tribune". The Express Tribune. 2016-03-19. Retrieved 2016-11-15.
  6. ^ "Volkswagen set to launch two new vehicles in Pakistan". Tribune.com.pk. Retrieved 2021-11-25.
  7. ^ "Heavy vehicles,Light vehicles,Chinese cars - Al Haj Faw motors Pakistan". Alhajfaw.com. Retrieved 2020-06-10.
  8. ^ "Hyundai Motor Plans Pakistan Venture With Billionaire Mansha". Bloomberg.com. 2017-02-03. Retrieved 2020-09-07.
  9. ^ "Automobile industry: Pakistan woos Renault-Nissan in investment push - The Express Tribune". The Express Tribune. 2016-05-07. Retrieved 2016-11-15.
  10. ^ "Audi AG expresses intent to assemble vehicles in Pakistan - The Express Tribune". The Express Tribune. 2016-11-15. Retrieved 2016-11-15.
  11. ^ "Chinese president to inaugurate 'Electric car manufacturing plant' in Pakistan". Automark. 2020-03-13. Retrieved 2020-12-20.
  12. ^ Desk, News (2020-09-21). "Javed Afridi all set to launch 'affordable' British SUVs in Pakistan". Global Village Space. Retrieved 2020-12-20.
  13. ^ "MG 2021 New Car Models Price & Pictures in Pakistan". www.pakwheels.com. Retrieved 2020-12-20.
  14. ^ "MG Motors Pakistan". mgmotors.com.pk. Retrieved 2020-12-20.
  15. ^ "MG Motors receives 10,000 orders for its Rs5.5 million SUV | SAMAA". Samaa TV. Retrieved 2020-12-20.
  16. ^ "Auto industry enjoys unequaled run of success - The Express Tribune". The Express Tribune. 2016-02-08. Retrieved 2016-11-15.
  17. ^ Raza, Syed Irfan (2021-07-09). "E-bike production launched to curb pollution". DAWN.COM. Retrieved 2021-07-09.
  18. ^ "The economy and automobile industry of Pakistan". Ukessays.com. Retrieved 2020-06-10.
  19. ^ "Automark Magazine". www.automark.pk.
  20. ^ a b "Data" (PDF). www.pama.org.pk. Retrieved 2020-06-10.

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External links[]

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