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 the one of the fastest-growing
industries of the country, accounting for 4% of Pakistan's GDP and employing a
workforce of over 1.8 million people.
[1] Currently,[
when?] there are 3,200 automotive manufacturing plants in the country, with an investment of ₨92 billion (US$570 million) producing 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly ₨50 billion (US$310 million). The sector, as a whole, provides employment to 3.5 million people and plays a pivotal role in promoting the growth of the vendor industry. Pakistan's auto market is considered[
by whom?] among the smallest, but fastest-growing in
Asia. Over 180,000 cars were sold in the fiscal year 2014–15, rising to 206,777 units fiscal year 2015–16.
[2][3][4] 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.
[5][6] In response,
Renault,
Nissan,
Proton Holdings,
Kia,
SsangYong,
Volkswagen,
[7] FAW[8] and
Hyundai[9] have expressed interest in entering the Pakistani market.
[2][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]
Contents
History[edit]
See also:
Industry of Pakistan
Early years (1950–1969)[edit]
Pakistan produced its first vehicle in 1953 at the
National Motors plant in
Karachi, according to the
Ministry of Industries & Production. The plant was opened in conjunction with
General Motors who arranged the facilities for the production of
Vauxhall cars and
Bedford trucks. Subsequently, buses, light trucks, and cars would be assembled at the same plant. In the same year,
Ford trucks partnered with
Ali Automobiles where they introduced
Ford Anglia,
Ford pickups and the
Ford Kombi.
Exide Pakistan also began the production of car batteries in 1953.
Haroon Industries partnered with
Dodge Motors in 1956.
[17]
In 1961,
Allwin Engineering introduced precision auto parts to the Pakistani auto market. In 1962,
Lambretta partnered with
Wazir Ali Engineering 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
Hye Sons began production of
Mack Trucks. In 1964,
Rana Tractors began producing
Massey Ferguson Tractors while the famous
Vespa scooter and rickshaw were introduced by
Raja Auto Cars. In 1965,
Jaffer Industries and
Mannoo Motors began operations.
Nationalisation (1970–1989)[edit]
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.
Wazir Ali Engineering was renamed to
Sindh Engineering,
Ali Autos to
Awami Autos,
Haroon Industries to
Republic Motors,
Ghandara Motors to
National Motors,
Hye Sons to
Mack Trucks, Kandawala Industries to Naya Daur Motors,
Jaffer Industries to
Trailer Development Corporation and Rana Tractors to
Millat Tractors.
Dawood Yamaha introduced
Yamaha motorcycles in 1974 and in the same year
Beta Engineering started producing diesel engines. In 1976,
Suzuki Motor Cycles launched by
Sindh Engineering.
Saif Nadeem Kawasaki launched
Kawasaki motorcycles in 1977 while
Suzuki Jeep was manufactured by Naya Daur Motors.
In 1980, Awami Motors began manufactured
Suzuki pickups while
Sindh Engineering 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)[edit]
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 there Association with Founder Chairman of Mr. Muhammad Sabir Shaikh, Association of Pakistan Motorcycle Assemblers APMA in 2002, after 2003 annual production of motorcycles kept increasing, with auto sales making records year after year, reaching a peak of 195,688 sales in 2007, during this period
Afzal Motors 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)[edit]
In 2010 the 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.
[18] Toyota started local assembly of its sedan
Corolla. Similarly,
United Motors started first Pakistani locally made
car Ghandhara Nissan started production of
Isuzu d-max in
Pakistan.
Historical production by year[edit]
Automobiles[edit]
Historical production by year
[19]
| 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[edit]
Historical production by year
[19]
| Year | Production |
|---|
| 1997 |
106,797 |
|---|
| 1998 |
92,978 |
|---|
| 1999 |
87,504 |
|---|
| 2000 |
86,959 |
|---|
| 2001 |
108,850 |
|---|
| 2002 |
120,627 |
|---|
| 2003 |
175,169 |
|---|
| 2004 |
303,383 |
|---|
| 2005 |
416,189 |
|---|
| 2006 |
520,124 |
|---|
| 2007 |
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[edit]
Active brands[edit]
Former brands[edit]
Monthly Production & Sales of Vehicles
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