This article needs additional citations for verification .(January 2023) |
The automotive industry in Pakistan is one of the smallest but fastest-growing industries in the country, growing by 171% between 2014 and 2018. It accounts for 3% of Pakistan's GDP and employed a workforce of over 3.5 million people as of 2018. Pakistan is the 23rd largest producer of automobiles. Its contribution to the national exchequer is nearly Rs. 50-billion (US$220 million). Pakistan's auto market is among the smallest but fastest growing in Asia.[ citation needed ] 269,792 cars were sold in 2018, but this number declined to 186,716 in 2019 due to austerity measures. In the 1990s and early 2000s, Pakistan had many Japanese cars. With the launch of the first Auto Policy in 2005, Pakistan launched its first indigenous car, Adam Revo. However, after the 2008 elections, the dollar started depreciating, and due to bad governance, many automakers began to halt production, with some exiting Pakistan. Currently, the auto market is dominated by Honda, Toyota, and Suzuki. However, on 19 March 2016, Pakistan passed a second "Auto Policy 2016-21," which offers tax incentives to new automakers to establish manufacturing plants in the country. In response, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen, FAW, and Hyundai have expressed interest in entering the Pakistani market. MG JW Automobile Pakistan has signed a memorandum of understanding (MoU) with 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.
Pakistan produced its first vehicle in 1953 at the National Motors plant in Karachi. The plant opened in conjunction with General Motors, which arranged facilities for the production of Vauxhall cars and Bedford trucks. Later, they assembled cars, buses, and light trucks. In the same year, Ford trucks partnered with Ali Automobiles, where they introduced the Ford Anglia, Ford pickups, and the 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, Lambretta partnered with Wazir Ali Engineering to begin production of the Lambretta TV200 scooter while Kandawala Industries introduced the CJ 5, CJ 6, and CJ 7 series Jeep. In 1963, 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.
The 1970s saw the 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 Sindh Engineering, Ali Autos became 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, Sindh Engineering launched Suzuki Motor Cycles. Saif Nadeem Kawasaki launched Kawasaki motorcycles in 1977. Naya Daur Motors began manufacturing Suzuki Jeep.
In 1980, Awami Motors began manufacturing Suzuki pickups while Sindh Engineering began producing Mazda Trucks. In 1981, Agriauto Industries introduced the production of local auto parts, and in 1982, Pak Suzuki started the production of vehicles. In 1983, the Vendor Development & Technical Cell or VDTC was formed by Al-Ghazi Tractors, which 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, the Pakistan Association of Auto Parts & Accessories Manufacturers began operations.
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 Pak Suzuki in 1991. In 1993, the Indus Motors Company began production of Toyota Corollas. 1994 saw the creation of the Pakistan Automotive Manufacturers Association, 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 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.
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 Toyota Corolla. Similarly, United Motors started producing a locally-made car. Ghandhara Nissan started the production of the Isuzu D-max in Pakistan.
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 |
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 |
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:
The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. It is one of the world's largest industries by revenue.
Isuzu Motors Ltd., commonly known as Isuzu, is a Japanese multinational automobile manufacturer headquartered in Yokohama, Kanagawa Prefecture. Its principal activity is the production, marketing and sale of Isuzu commercial vehicles and diesel engines.
Lists of automobile-related articles cover a wide range of topics related to cars. The lists are organized by manufacturer, region, sport, technology and so on.
The Japan Mobility Show (ジャパンモビリティショー) (TMS) is a biennial auto show held in October–November at the Tokyo Big Sight, Tokyo, Japan for cars, motorcycles and commercial vehicles. Hosted by the Japan Automobile Manufacturers Association (JAMA), it is a recognized international show by the Organisation Internationale des Constructeurs d'Automobiles, and normally sees more concept cars than actual production car introductions which is the reason why the auto press see the show as one of the motorshow's big five.
The automotive industry in India is the fourth-largest by production in the world as per 2022 statistics. As of 2023, India is the 3rd largest automobile market in the world in terms of sales. In 2022, India became the fourth largest country in the world by the valuation of its automotive industry.
Nexus Automotive (Pvt) Ltd was an importer and assembler of General Motors products in Pakistan. The company was founded by M.A. Razaq, an expatriate Pakistani who retired as Corporate Vice President of General Motors Corporation, 1999. Balubaid Establishment of Saudi Arabia, a diversified group involved in automotive, real estate, and other industrial businesses, was an investor in the assembly business of Nexus Automotive. The company was privately owned, with ownership distributed between Pakistani and Saudi families. Nexus used the idle capacity at the Ghandhara Nissan Limited plant at Port Qasim to assemble vehicles, under a contract assembly agreement.
Japan Automobile Manufacturers Association, or JAMA, is a trade association with its headquarters in Tokyo, Japan. It was founded in April 1967 and serves as a platform for the automakers of Japan to share technological developments and management practices. There are currently 14 member companies, manufacturing not only cars, but trucks and motorcycles as well. The organization also deals with the manufacturing and distribution of vehicle parts around the world. Together, the companies of JAMA hold a vast share of the markets in the United States, Europe, and many developing countries. JAMA also has offices located in Beijing, Singapore, Washington, D.C., Toronto and Brussels, Belgium.
The Auto Expo is a biennial automotive show held in Greater Noida, NCR, India.
The automotive industry in Canada consists primarily of assembly plants of foreign automakers, most with headquarters in the United States or Japan, along with hundreds of manufacturers of automotive parts and systems, a sector represented by the APMA.
The Brazilian automotive industry is coordinated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), created in 1956, which includes automakers with factories in Brazil. Anfavea is part of the Organisation Internationale des Constructeurs d'Automobiles (OICA), based in Paris. In 2021, the annual production exceeded 2.2 million vehicles, the 8th largest in the world.
This article provides an overview of the automotive industry in countries around the world.
The automotive industry in South Korea is the fifth-largest in the world as measured by automobile unit production and also the sixth-largest by automobile export volume.
The automotive industry in Japan is one of the most prominent and largest industries in the world. Japan has been in the top three of the countries with the most cars manufactured since the 1960s, surpassing Germany. The automotive industry in Japan rapidly increased from the 1970s to the 1990s and in the 1980s and 1990s, overtook the U.S. as the production leader with up to 13 million cars per year manufactured and significant exports. After massive ramp-up by China in the 2000s and fluctuating U.S. output, Japan is currently the third largest automotive producer in the world with an annual production of 9.9 million automobiles in 2012. Japanese investments helped grow the auto industry in many countries throughout the last few decades.
As of 2019, the automotive industry in Thailand is the largest in Southeast Asia and the 10th largest in the world. The Thai industry has an annual output of more than two million vehicles, more than countries such as Belgium, Canada, the United Kingdom, Italy, Czech Republic and Turkey.
The Pakistan Automotive Manufacturers Association (PAMA) (Urdu: پاکستان موٹر گاڑی تولید کننده تنظیم) is a trade group of automobile manufacturers that operate in Pakistan.
The automotive industry in the Philippines is one of the largest in the Asia-Pacific region, with approximately 441.4 thousand vehicles sold in 2023. Most of the vehicles sold and built in the Philippines are from foreign brands. For the most part, the Philippines is dominated by Japanese automobile manufacturers like most of its ASEAN neighbors. The automobile production in the country is covered under the Philippine Motor Vehicle Development Program implemented by the Board of Investments. In addition, there are also a small number of independent firms who assemble and fabricate jeepneys and other similar vehicles, using surplus engines and drivetrain parts mostly from Japan.