Latest Updates on Pakistan’s Automobile Industry You Won’t Find Elsewhere!

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Accounting for 4% of the country’s total gross domestic product (GDP), the local automobile manufacturing sector has a major role to play in the progress and stability of the national economy. This is one of the major reasons why the federal government is making all possible efforts to facilitate the industries manufacturing vehicles locally.

The public and private stakeholders of the automobile industry are currently focusing on the production of low-cost hatchbacks and mid-size sedans, which are two of the most in-demand car types in Pakistan. There is also a huge demand for vans and minivans in the country, most of which are used as commercial and utility vehicles in the country.

Market Saturation and Local Auto Industry

With so many imported options available these days, Pakistan’s auto sector is now based on a saturated market. The increasing amount of imported vehicles is definitely not good for the country’s economy, but it is constantly pushing the local automobile assemblers and manufacturers to offer products that are affordable yet innovative.

New Entrants to Pakistan’s Auto Market

South Korean brands like Kia Corporation and Hyundai Motor Company have recently introduced their vehicles in Pakistan

We are all aware of the fact that the automobile industry of Pakistan has been dominated by Japanese players, namely Suzuki, Toyota, and Honda. Due to their partnership with local companies, they are locally known as Pak Suzuki, Toyota Indus, and Honda Atlas Cars. 

However, with new entrants tapping into Pakistan’s automotive market, things are expected to change within the near future. Keeping in view the incredible potential of the local auto industry, which is based on the rapidly-increasing consumer buying power, other world-famous brands are also planning to capitalise on the available opportunities.

South Korean brands like Kia Corporation and Hyundai Motor Company have recently introduced their vehicles in Pakistan. Another very famous Chinese-owned British automotive manufacturer, MG, has recently debuted in the Pakistani auto market with their subcompact crossover vehicles. 

You may also have heard about Changan. It is a Chinese brand, which has only been selling minivans and many other types of utility vehicles in the local market ever since it was introduced — up until 2021 — when it finally announced its very first sedan by the name of ‘Alsvin’. 

It was a groundbreaking move for a company like Changan, which put it in direct competition with many other leading automotive brands in the market.

The Affordability Factor

affordable sedan in pakistan
Changan Alsvin is an affordable subcompact sedan

Changan’s Alsvin is a compact sedan, which directly competes with Toyota Yaris and Honda City. Comparing the features side by side, Alsvin has more to offer than the latter options. Changan is currently putting in efforts to establish its name in the market, which is why it is now more focused on affordability without compromising on the features it offers. It is one of the main reasons why Changan is a few lacs cheaper than many other compact sedans that are directly in its competition.

Entirely ‘Made in Pakistan’ Cars

Along with international players entering the automotive market to provide more options to car buyers in Pakistan, there are also a few local brands that are producing and selling their own vehicles in the country. Companies like United Auto Industries and Regal Automobiles are two noteworthy examples in this regard. 

Both of these local manufacturers have launched 800cc small hatchback cars by the name of United Bravo and Prince Pearl, respectively. Costing around PKR 10 lakh, these cars are even more affordable than the cheapest variant of Suzuki Alto in Pakistan. 

What is Pakistan Automotive Manufacturers Association (PAMA)?

Pakistan Automotive Manufacturers Association (PAMA)
The primary objective of PAMA is the growth and development of the local auto industry

As the name implies, the Pakistan Automotive Manufacturers Association (PAMA) is a leading advocacy group for the Pakistani auto industry formed by automobile manufacturing companies, entities, and firms that operate locally. 

Licensed by the Ministry of Commerce, the group operates and functions according to the Trade Organisations Ordinance 2007. The primary objective of this association is the growth and development of the local auto industry. The group has also been formed to safeguard the interests of the local automobile manufacturers and assemblers. Following is the list of the members of PAMA: 

  • Pak Suzuki Motor Co. Ltd
  • Indus Motor Co. Ltd. 
  • Sigma Motors Ltd. 
  • Hinopak Motors Ltd. 
  • Ghandhara Nissan Ltd. 
  • Master Motor Corporation Ltd. 
  • Millat Tractors Ltd. 
  • Atlas Honda Ltd. 
  • Plum Qingqi Motors Ltd. 
  • Fateh Motors Ltd. 
  • Ravi Automobile Pvt. Ltd. 
  • Sazgar Engineering Works Ltd. 
  • Orient Automotive Industries Pvt. Ltd. 
  • Eiffel Industries Ltd. 
  • Yamaha Motor Pakistan Pvt. Ltd. 
  • Al-Ghazi Tractors Ltd.
  • United Auto Industries Pvt. Ltd.
  • Hyundai Nishat Motor Pvt. Ltd.

Projected Growth of Pakistan’s Automobile Industry’s 

fuure of automobile production in pakistan
Automobile production will increase by many folds in the next few years

Keeping in view the upcoming policies, incentives and various other initiatives by the federal government, the automobile sector of the country is about to witness exponential growth. The local assembling and manufacturing of vehicles, which now account for 250,000 units annually, will increase by many folds in the next few years. The authorities are currently working to achieve the target of 1 million locally produced vehicles per year. 

According to Pakistan’s Ambassador to China Moinul Haque, the country is also currently working on its auto policy for the next five years, which will also include special incentives and waivers for hybrid and electric vehicles in the country to promote the concept of eco-friendly transportation means nationally.

EV Policy in Pakistan

ev policy in pakistan
The government is aiming to convert at least 30% of the total vehicles in the country to electric vehicles within the next 15 to 20 years.

With the approval and initiation of the framework related to an auto policy promoting the concept of electric vehicles (EVs), Pakistan joined the global EV revolution last year. So far, the federal government has introduced many taxation and monetary policies in favour of EV and hybrid vehicle owners by announcing a reduction in taxes and charges. A comprehensive auto policy for the next five years, which is currently in the works, is expected to bring further leverages for the hybrid and electric vehicle industry in the country. 

In the federal budget 2021-22, the value-added tax on the import of electric vehicles (EVs) has also been waived for the current fiscal year. The authorities are currently working on a long-term plan, according to which they are aiming to convert at least 30% of the total vehicles in the country to electric vehicles within the next 15 to 20 years.

EV charging stations are being established all over the country. Prime Minister Imran Khan has recently introduced Pakistan’s first electric motorbike, which is manufactured and distributed by Jolta Electric. Considering all the aforementioned factors, the number of electric vehicles is expected to grow exponentially, which will further diversify the scope of the local auto sector. If you want to learn more about EV Policy in Pakistan, click on the highlighted text.

Now that we have given you all the latest updates and key information about the automobile industry in Pakistan, it’s time for us to wrap up. If you have any questions or feedback related to the topic, you can drop us an email at blog@zameen.com

On a side note, if you want to learn more about car financing in Pakistan, then you may like reading our detailed blog on the current auto loan rates in the country. Also, if you are living abroad, you can check out our piece on the Roshan Apni Car Scheme, which reduces the overall cost of car financing by up to 20% for non-resident Pakistanis.

For more informative posts related to major industrial and property developments taking place all over the country, subscribe to Zameen Blog — the best real estate blog in Pakistan. You can also get all our latest updates by subscribing to our newsletter.



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