Automotive industry in Pakistan

Source: Wikipedia, the free encyclopedia.
Toyota Indus's Corolla
is the most assembled car in Pakistan. In 2017, 52,874 models were made.

The automotive industry in Pakistan is one of the smallest but fastest-growing

Morris Garages (MG) Motor UK Limited, owned by SAIC Motor, to bring electric vehicles to Pakistan. NLC signed an agreement with Mercedes-Benz to manufacture Mercedes Actros trucks in Pakistan. Pakistan has not enforced any automotive safety standards or model upgrade policies. A few older vehicle models, including the Bolan and Ravi, continue to be sold by Suzuki. On 8 July 2021, Jolta Electric launched the production of electric motorcycles
.

On 26 December 2021, the Government of Pakistan announced a five-year policy between 2021 and 2026 to raise the production capacity of automobiles in Pakistan. On 20 October 2020, during a meeting with 50 Chinese automotive brands, the Pakistani envoy to China said that Pakistan will increase its automobile production to 6-8 million units in the next five years. Pakistan is building special economic zones where Chinese companies will be able to set up their businesses. In that meeting, 10 Chinese and Nasal automotive companies prepared to invest in Pakistan.

Due to the bad economic conditions, Pakistan car sales in November 2023 plummet to under 5,000.

History

See also: Industry of Pakistan

Early years (1950–1969)

Pakistan produced its first vehicle in 1953 at the National Motors plant in

Ford Kombi. Exide Pakistan also began the domestic production of car batteries in 1953. Haroon Industries partnered with Dodge Motors in 1956.[1]

In 1961, Allwin Engineering introduced precision auto parts to the Pakistani automobile market. In 1962,

General Tyre Pakistan began production in Karachi, and Hye Sons began production of Mack Trucks. In 1964, Rana Tractors began producing Massey Ferguson Tractors. At the same time, the famous Vespa scooter and rickshaw
were introduced by Raja Auto Cars. In 1965, Jaffer Industries and Mannoo Motors began operations in the country.

Nationalisation (1970–1989)

The 1970s saw the nationalization of many companies. In 1972, the

Suzuki Jeep
.

In 1980, Awami Motors began manufacturing

PACO, Al-Futtaim Group, Hino Motors, & TTC. In 1987, Ghandhara Nissan began production of Nissan Diesel Trucks
. In 1989, the Pakistan Association of Auto Parts & Accessories Manufacturers began operations.

Deregulation (1990–2009)

Until the early 1990s, the industry was highly regulated. Following deregulation, the decade witnessed a massive boom in auto production as nationalization was abandoned in favor of privatization. Suzuki Motor Corporation of Japan increased its ownership to 40% of the shares of

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 began assembling replicas of the Honda CD70. With collaboration from China, the Association of Pakistan Motorcycle Assemblers (APMA) was established. Mr. Muhammad Sabir Shaikh, who started making Chinese-based replicas, was the First Chairman of the APMA in 2002. After 2003, the annual production of motorcycles increased at record rates, reaching a peak of 195,688 sales in 2007, and in 2015, production surpassed 2.5 million units annually. During this period, Afzal Motors began the 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 increasing rural purchases. From 2007 to 2009, the auto sector witnessed reduced 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 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 Rs. 20 billion (US$69 million) over a decade. Motorcycle production hit a record level in 2016–17, with 2.5 million units produced in total. Auto Policy 2016-21 was introduced in 2015 to help lure new automakers, historically dominated by Honda, Toyota, and Suzuki. The auto industry remains the second-largest payer of indirect taxes after the petroleum industry in Pakistan. There are ten cars for every 1,000 people in Pakistan. This is one of the lowest ratios among emerging economies, which speaks of high growth potential. Rising per capita income, changing demographic distribution, and an anticipated influx of 30 to 40 million young people in the economically-active workforce within the next decade will boost the industry. Alongside the drastic increase in the middle class, Toyota started the local assembly of its sedan, the

Isuzu D-max in Pakistan
.

Historical production by year

Automobiles

Historical production by year[2]
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
298,183

Motorcycles

Historical production by year[2]
Year Production
1997
106,797
1998
92,978
1999
87,504
2000
86,959
2001
108,850
2002
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

Others (Local dealers & distributors only)

Few mainstream brands have official representation in Pakistan, but some brands that do not have official representation can be imported through exotic car dealers located in Pakistan and the Middle East region. Some of these notable brands are mentioned below:

See also

  • Electric vehicle industry in Pakistan

References

  1. ^ "The economy and automobile industry of Pakistan". Ukessays.com. Retrieved 2020-06-10.
  2. ^ a b "Data" (PDF). www.pama.org.pk. Archived from the original (PDF) on 2017-09-21. Retrieved 2020-06-10.

External links

Retrieved from "https://en.wikipedia.org/w/index.php?title=Automotive_industry_in_Pakistan&oldid=1219274092"