Automotive industry in Pakistan

The automotive industry in Pakistan is one of t he fast est -growing indust ries in t he count ry, growing by 171% bet ween just 2014 and 2018. It account s
for 3% of Pakist an's GDP and employs a workforce of over 3.5 million people as of 2018.[1] Pakist an is t he 35t h largest producer of aut omot ives.[2] It s
cont ribut ion t o t he nat ional exchequer is nearly ₨50 billion (US$310 million). Pakist an's aut o market is among t he smallest , but fast est -growing in Asia.
269,792 cars were sold in t he year 2018, but declined t o 186,716 in 2019 as a result of aust erit y measures.[3] At present , t he aut o market is dominat ed by
Honda, Toyot a and Suzuki. However, on 19 March 2016, Pakist an passed t he "Aut o Policy 2016-21", which offers t ax incent ives t o new aut omakers t o
est ablish manufact uring plant s in t he count ry.[4][5] In response, Renault , Nissan, Prot on Holdings, Kia, SsangYong, Volkswagen,[6] FAW[7] and Hyundai[8] have
expressed int erest in ent ering t he Pakist ani market .[9][10] MG JW Aut omobile Pakist an has signed Memorandum of Underst anding (MoU) wit h Morris
Garages (MG) Mot or UK Limit ed, owned by SAIC Mot or t o bring elect ric vehicles in Pakist an.[11][12][13][14][15] NLC signed an agreement wit h Mercedes Benz
for t he manufact uring of Mercedes Act ros t rucks in Pakist an. Pakist an has not enforced any aut omot ive safet y st andards or model upgrade policies. A
few old models of vehicles including t he Bolan and Ravi cont inue t o be sold by Suzuki.[16] On 8 July 2021, Jolt a Elect ric launched product ion of elect ric
mot orcycles.[17]

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

Government of Pakist an will soon announce a five year policy bet ween 2021-26 t o raise t he product ion capacit y of aut ombile in Pakist an. On 20 Oct ober,
t he Pakist ani envoy t o China said during t he meet ing wit h 50 Chinese aut omot ive brands, t hat Pakist an will increase it s aut omobile product ion t o 6-8 million
unit s in next five years. Pakist an is building special economic zones, where Chinese companies are set t ing up t heir businesses. In t hat meet ing, 10 Chinese
and Nasla aut omot ive companies got ready t o invest in Pakist an.

History

Early years (1950–1969)

Pakist an produced it s first vehicle in 1953 at t he Nat ional Mot ors plant in Karachi. The plant was opened in conjunct ion wit h General Mot ors who arranged
t he facilit ies for t he product ion of Vauxhall cars and Bedford t rucks. Lat er, buses, light t rucks, and cars were assembled at t he same plant . In t he same
year, Ford t rucks part nered wit h Ali Aut omobiles where t hey int roduced t he Ford Anglia, Ford pickups and t he Ford Kombi. Exide Pakist an also began t he
product ion of car bat t eries in 1953. Haroon Indust ries part nered wit h Dodge Mot ors in 1956.[18]

In 1961, Allwin Engineering int roduced precision aut o part s t o t he Pakist ani aut o market . In 1962, Lambret t a part nered wit h Wazir Ali Engineering t o begin
product ion of t he Lambret t a TV200 scoot er while Kandawala Indust ries int roduced t he CJ 5, CJ 6, CJ 7 series Jeep. In 1963, General Tyre Pakist an began
product ion in Karachi while Hye Sons began product ion of Mack Trucks. In 1964, Rana Tract ors began producing Massey Ferguson Tract ors while t he
famous Vespa scoot er and rickshaw were int roduced by Raja Aut o Cars. In 1965, Jaffer Indust ries and Mannoo Mot ors began operat ions.

Nationalisation (1970–1989)
The 1970s saw nat ionalizat ion of many companies. In 1972, t he Pakist an Aut omobile Corporat ion (PACO) was formed. Many companies were bought out or
merged int o ot hers. Wazir Ali Engineering was renamed t o Sindh Engineering, Ali Aut os t o Awami Aut os, Haroon Indust ries t o Republic Mot ors, Ghandara
Mot ors t o Nat ional Mot ors, Hye Sons t o Mack Trucks, Kandawala Indust ries t o Naya Daur Mot ors, Jaffer Indust ries t o Trailer Development Corporat ion
and Rana Tract ors t o Millat Tract ors. Dawood Yamaha int roduced Yamaha mot orcycles in 1974 and in t he same year Bet a Engineering st art ed producing
diesel engines. In 1976, Suzuki Mot or Cycles launched by Sindh Engineering. Saif Nadeem Kawasaki launched Kawasaki mot orcycles in 1977 while Suzuki
Jeep was manufact ured by Naya Daur Mot ors.

In 1980, Awami Mot ors began manufact ured Suzuki pickups while Sindh Engineering began producing Mazda Trucks. In 1981, Agriaut o Indust ries int roduced
product ion of local aut o part s while in 1982, Pak Suzuki began product ion of vehicles. In 1983, t he Vendor Development & Technical Cell or VDTC was
formed along wit h Al-Ghazi Tract ors which was int roduced by Fiat . In 1986, Hinopak Mot ors began as a joint vent ure bet ween PACO, Al-Fut t aim Group, Hino
Mot ors & TTC. In 1987, Ghandhara Nissan began product ion of Nissan Diesel Trucks. In 1989, Pakist an Associat ion of Aut o Part s & Accessories
Manufact urers began operat ion.

Deregulation (1990–2009)

The indust ry was highly regulat ed unt il t he early 1990s. Following deregulat ion, t he decade wit nessed a huge boom in aut o product ion, as nat ionalizat ion
was abandoned in favor of privat izat ion. Japan acquired t he 40% shares of Pak Suzuki in 1991. In 1993, t he Indus Mot ors Company began product ion of
Toyot a Corollas. In 1994, t he Pakist an Aut omot ive Manufact urers Associat ion formed, and Honda At las int roduced manufact uring of t he Honda Civic. In
1995, t he Engineering Development Board inaugurat ed t he PAP show.

From 2001 t o 2007, small assemblers and many bike import ers st art ed assembling replicas of t he Honda CD70 wit h Chinese collaborat ion and est ablished
t he Associat ion wit h of Pakist an Mot orcycle Assemblers (APMA) in 2002. Aft er 2003, annual product ion of mot orcycles increased at record rat es,
reaching a peak of 195,688 sales in 2007. During t his period Afzal Mot ors began local assembly of Daewoo buses and t rucks under license from Daewoo
Bus, Sout h Korea and Tat a Daewoo. Thanks t o rising car financing up t o 70–80% by banks and low int erest rat es coupled wit h rising rural purchases. From
2007 t o 2009, t he aut o sect or wit nessed reduce sales amid high int erest rat es and yen appreciat ion against t he rupee. In 2007, t he aut omot ive indust ry
made up 2.8% of Pakist an's GDP and cont ribut ed 16% t o t he manufact uring sect or. The 2000s also saw t he int roduct ion of dual fuel opt ions t o run bot h on
pet rol and CNG, which is more affordable and cheaper t han pet rol in t he count ry.

Rapid growth (2010–present)

In 2010, aut o sales rebounded and began increasing again. The aut o indust ry predict ed a growing demand in Pakist an and invest ed over ₨20 billion
(US$120 million) during t his decade. Mot orcycle product ion hit a record level in 2016–17, wit h 2.5 million unit s made. In 2015, t he Aut o Policy 2016-21 was
int roduced, t o help lure new aut omakers, which has t radit ionally been dominat ed by Honda, Toyot a and Suzuki. The aut o indust ry remains t he second-
largest payer of indirect t axes aft er t he pet roleum indust ry in Pakist an. At present , t here are 10 cars for every 1,000 people in Pakist an. This is one of t he
lowest rat ios among emerging economies, which it self speaks of high pot ent ial of growt h. Rising per capit a income wit h changing demographic dist ribut ion
and an ant icipat ed influx of 30 t o 40 million young people in t he economically act ive workforce in t he next decade will provide a st imulus t o t he indust ry t o
expand and grow, alongside t he drast ic increase in t he middle class.[19] Toyot a st art ed local assembly of it s sedan Corolla. Similarly, Unit ed Mot ors st art ed
t he first locally made car. Ghandhara Nissan st art ed t he product ion of Isuzu d-max in Pakist an.

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

Below is t he list of act ive manufact urers wit h t heir assemblers & joint -vent ures:

Afzal Mot ors — (Daewoo Bus, Daewoo Truck)

Al-Ghazi Tract ors

Al Haj FAW Mot ors — (FAW Group)

Al Haj Prot on (ht t ps://prot on.com.pk/) — (Proton Holdings)

At las Honda — (Honda Motorcycles)

Cavalier Aut omot ive (ht t p://www.cac-lt d.com/)

DYL Mot orcycles — (Yamaha Motor Company)

Ghandhara Indust ries — (Isuzu)

Ghandhara Nissan — (Dongfeng Motor Corporation, JAC Motors, Renault Trucks)

Heavy Indust ries Taxila

Hinopak Mot ors — (Hino Motors)

Honda At las Cars — (Honda Automobiles)

Hyundai Nishat Mot ors — (Hyundai Motor Company)

Indus Mot ors Company — (Toyota)

Jolt a Elect ric (ht t ps://www.jolt aelect ric.com/)

JW Forland — (Foton Motor)

Lucky Mot or Corporat ion — (Kia, Peugeot)

Mast er Mot ors — (Changan Automobile, Daimler Fuso)

MG JW Aut omobile — (MG Motor)

Millat Tract ors

Pak Suzuki Mot ors — (Suzuki)

Plum Qingqi Mot ors (ht t p://qingqi.com.pk/about -us-2/) — (Jinan Qingqi)

Premier Mot ors (ht t p://www.premier.com.pk/about -us/) — (Škoda, Volkswagen)

Hi-Speed (ht t ps://raazymot or.com.pk/product s.ht ml)

Ravi Mot orcycles — (Derbi, Piaggio, Vespa)

Prince Mot ors (ht t ps://regalaut omobiles.com/company-profile/)

Road Prince (ht t ps://roadprince.com.pk/about -us/)

Sazgar — (BAIC Group)

Unit ed Aut o Indust ries

Yamaha Mot or Pakist an — (Yamaha Motor Company)

Former brands
Adam Mot or Company Dewan Farooque Mot ors Nexus Aut omot ive

Automotive distributors in Pakistan

Various car and mot orcycle companies are in various st ages officially available & serviced in Pakist an. Some are ment ioned below:-

Aprilia (ht t ps://www.apriliapakist an.com/)

 Audi (ht t ps://www.audi.com.pk/sea/web/pk.ht m Haval (ht t ps://www.haval.pk/) Porsche (ht t ps://www.inst agram.com/porschec
l) ent repakist an/?hl=en)
Higer Bus (ht t p://www.higer.com.pk/)
Benelli (ht t ps://pakist an.benelli.com/) Rolls-Royce (ht t ps://driver.pk/car-showrooms/r
Keeway (ht t ps://pakist an.keeway.com/)
olls-royce-showroom-in-pakist an-cont act -num
BMW (ht t ps://www.bmw-pakist an.com/en/inde
Land Rover ber-address/)
x.ht ml)
Mercedes-Benz (ht t p://www.mercedesbenzpk. Volvo Buses
Cat erpillar (ht t ps://aesl.com.pk/about -us/)
com/)
Volvo Const ruct ion Equipment
DFSK (ht t ps://dfskpakist an.com/)
Mot o Guzzi (ht t ps://www.mot oguzzi.com/en_ E
Volvo Trucks
Harley-Davidson (ht t ps://vehiclebaba.com/bik N/)
e/harley-davidson)

See also

Elect ric vehicle indust ry in Pakist an

bike price in pakist an (ht t ps://vehiclebaba.com/bike/)

car price in pakist an (ht t ps://vehiclebaba.com/car/)

References

1. "Automotive Industry's Contribution to Pakistan [Infographic]" (http://pbit.gop.p 10. "Audi AG expresses intent to assemble vehicles in Pakistan - The Express
k/system/files/Auto%20Sector_1.pdf) (PDF). Punjab Board of Investment and Tribune" (http://tribune.com.pk/story/1231159/audi-ag-expresses-intent-assemb
Trade. January 2018. Archived (https://web.archive.org/web/20210927045219/ le-vehicles-pakistan/) . The Express Tribune. 2016-11-15. Retrieved 2016-11-15.
http://pbit.gop.pk/system/files/Auto%20Sector_1.pdf) (PDF) from the original
11. "Chinese president to inaugurate 'Electric car manufacturing plant' in Pakistan"
on 27 September 2021.
(https://www.automark.pk/chinese-president-to-inaugurate-electric-car-manufact
2. "List of countries by motor vehicle production" (https://en.wikipedia.org/w/index. uring-plant-in-pakistan) . Automark. 2020-03-13. Retrieved 2020-12-20.
php?title=List_of_countries_by_motor_vehicle_production&oldid=1036023757) ,
12. Desk, News (2020-09-21). "Javed Afridi all set to launch 'affordable' British SUVs
Wikipedia, 2021-07-29, retrieved 2021-09-27
in Pakistan" (https://www.globalvillagespace.com/javed-afridi-mg/) . Global
3. "2019 Statistics | www.oica.net" (https://www.oica.net/category/production-stati Village Space. Retrieved 2020-12-20.
stics/2019-statistics/) . www.oica.net. Retrieved 2021-09-27.
13. "MG 2021 New Car Models Price & Pictures in Pakistan" (https://www.pakwheels.
4. "Auto policy" (https://web.archive.org/web/20170317002756/http://boi.gov.pk/u com/new-cars/mg/) . www.pakwheels.com. Retrieved 2020-12-20.
serfiles1/file/AutoPolicy/AP.pdf) (PDF). boi.gov.pk. Archived from the original
14. "MG Motors Pakistan" (https://mgmotors.com.pk/) . mgmotors.com.pk.
(http://boi.gov.pk/userfiles1/file/AutoPolicy/AP.pdf) (PDF) on 2017-03-17.
Retrieved 2020-12-20.
Retrieved 2020-06-10.
15. "MG Motors receives 10,000 orders for its Rs5.5 million SUV | SAMAA" (https://w
5. "Auto policy approved, door wide open for new entrant - The Express Tribune" (ht
ww.samaa.tv/money/2020/11/mg-motors-receives-10000-orders-for-its-rs5-5-mil
tp://tribune.com.pk/story/1068402/long-awaited-auto-policy-approved-door-wid
lion-suv/) . Samaa TV. Retrieved 2020-12-20.
e-open-for-new-entrant/) . The Express Tribune. 2016-03-19. Retrieved
2016-11-15. 16. "Auto industry enjoys unequaled run of success - The Express Tribune" (http://tri
bune.com.pk/story/1042152/automotive-industrys-impressive-numbers/) . The
6. https://tribune.com.pk/story/1325911/volkswagen-set-launch-two-new-vehicles-
Express Tribune. 2016-02-08. Retrieved 2016-11-15.
pakistan/
17. Raza, Syed Irfan (2021-07-09). "E-bike production launched to curb pollution" (ht
7. "Heavy vehicles,Light vehicles,Chinese cars - Al Haj Faw motors Pakistan" (http://
tps://www.dawn.com/news/1634036) . DAWN.COM. Retrieved 2021-07-09.
alhajfaw.com/) . Alhajfaw.com. Retrieved 2020-06-10.
18. "The economy and automobile industry of Pakistan" (https://www.ukessays.co
8. "Hyundai Motor Plans Pakistan Venture With Billionaire Mansha" (https://www.bl
m/essays/management/the-economy-and-automobile-industry-of-pakistan-man
oomberg.com/news/articles/2017-02-03/hyundai-motor-plans-pakistan-venture-
agement-essay.php) . Ukessays.com. Retrieved 2020-06-10.
with-billionaire-mansha) . Bloomberg.com. 2017-02-03. Retrieved 2020-09-07.
19. "Automark Magazine" (https://www.automark.pk) . www.automark.pk.
9. "Automobile industry: Pakistan woos Renault-Nissan in investment push - The
Express Tribune" (http://tribune.com.pk/story/1098588/automobile-industry-pak 20. "Data" (http://www.pama.org.pk/images/stories/pdf/test.pdf) (PDF).
istan-woos-renault-nissan-in-investment-push/) . The Express Tribune. 2016-05- www.pama.org.pk. Retrieved 2020-06-10.
07. Retrieved 2016-11-15.

ht t ps://yari.pk/

External links

Mont hly Aut omark Magazine (ht t p://www.aut omark.pk/)

 Pakist an Aut omot ive Manufact urers Associat ion (ht t p://www.pama.org.pk/)

Cars & Models Current ly Present & Selling in Pakist an (ht t p://fairwheels.com/invent ory/?locat ion=pakist an&condit ion=informat ion&sort _ order=dat e_ low
&view_ t ype=list )

Cars & Models Current ly Present & Selling in Karachi (ht t ps://wheels-deals.pk/vehica_ t emplat e/vehicle-search-result s/)

Car care product s manufact urer in Pakist an (ht t ps://buraqaut omat e.pk/)

Retrieved from "https://en.wikipedia.org/w/index.php?

title=Automotive_industry_in_Pakistan&oldid=1053824058"

Last edited 21 hours ago by Shekskeas

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