Automotive Industry of Pakistan
Automotive Industry of Pakistan: Pakistan is the 33rd largest country in the world with a population of about 220 million people. The automotive industry of Pakistan is considered one of the odd industries. 3 major companies in Pakistan are dominating the automotive industry, especially the car industry. These 3 major companies are Toyota, Honda, and Suzuki. One of the fastest-growing industries in Pakistan is the car industry. From the year 2014 to 2018 Automotive industry increased their sale by 171%. About 1.9 million people are employed in the industry. There are about 3200 automotive manufacturing plants in Pakistan with an investment of Rs 95 billion. Annually more than 200,000 vehicles and 1.8 million motorcycles are produced in Pakistan.
According to the Ministry of Industry and Production, the National Motor plant in Karachi manufactured the first vehicle in 1953. General Motors facilitated the production of Vauxhall cars and Bedford trucks. The plant also assembled the buses, trucks, and cars subsequently. Ford pickups, Ford Kombi and Ford Anglia were introduced by Ali Automobiles after the partnership with Ford trucks. Car battery production was also started in 1953 by Exide Pakistan.
Allwin Engineering started manufacturing and importing precisions auto parts in 1961. Wazir Ali Engineering partnered with Lambretta and started manufacturing of Lambretta TV200 scooter in 1962. At the same time, Kandawala Industries started manufacturing the CJ 5, CJ 6, and CJ 7 series Jeep. General Tyre Pakistan started manufacturing in Karachi in 1963, while Hye Sons introduced Mack Truck.
Massey Ferguson Tractors were introduced In 1964 by Rana Tractors while Raja Auto Cars introduced the famous Vespa scooter and rickshaw. Manno Motors and Jaffer Industries were established in 1965.
The government of Pakistan nationalized many companies in 1970 and formed Pakistan Automobiles Corporation (PACO) in 1972. Most of the companies merged into others.
Ali Autos was renamed to Awami Autos, Haroon Industries to Republic Motors, Jaffer Industries to Trailer Development Corporation, Hye Sons to Mack Trucks, Wazir Ali Engineering to Sindh Engineering, Gandhara Motors to National Motors, Kandawala Industries to Naya Daur Motors, and Rana Tractors to Millat Tractors.
In 1974 Beta Engineering began manufacturing diesel engines. Awami Motors started making Suzuki pickups while Sindh Engineering started manufacturing Mazda Trucks in 1980. Pak Suzuki started the production of vehicles in 1982. Fiat introduced Vendor Development & Technical Cell or VDTC and Al-Ghazi Tractors in 1983. Hinopak Motors joint ventured with PACO, Al-Futtaim Group, Hino Motors & TTC in 1986. Ghandhara Nissan introduced Nissan Diesel Trucks in 1987. Pakistan Association of Auto Parts & Accessories Manufacturers started its operations in 1989.
The government regularized the industry in 1990. The industry moved from nationalization to privatization and brought a huge boom in the production of automobiles. 40% share of Pak Suzuki was acquired by Suzuki Japan in 1991. The production of Toyota corollas was started by Indus Motors Company in 1993. Pakistan Automotive Manufacturers Association was formed in 1994. Honda Civic was introduced by Honda Atlas.
From 2001 to 2007, Afzal Motors started the assembly of Daewoo buses and trucks.
There was an increase in the sales in the industry of automobiles and the demand was growing in the year 2010. More than ₨20 billion (US$120 million) was invested in this period. In 2016-17 there was a record production of motorcycles. To help new automakers the AUTOMOTIVE DEVELOPMENT POLICY (2016-2021) was introduced. The second-largest taxpayer’s industry is the automobile industry in Pakistan. The assembly of the sedan corolla by Toyota and Isuzu d-max by Ghandhara Nissan was started at the local level in Pakistan.
PAK SUZUKI MOTORS
Pak Suzuki Motor Company (PSMCL) is affiliated with Suzuki Japan. It is not only an assembler but also a distributor of cars manufactured by Suzuki at local as well as foreign divisions. Pak Suzuki Motors is the largest producer of cars in Pakistan.
It was formed in September 1982. It is a joint venture between the Government of Pakistan and Suzuki Motor Japan. Suzuki has 73.09% of the stock. Pak Suzuki is leading by having the maximum percentage of the market share in the Pakistan Automobile Market. Pak Suzuki has a monopoly in the segment of small cars. Producing economical cars. Pak Suzuki makes Suzuki Mehran. Suzuki Mehran is the best-selling car in Pakistan. Pak Suzuki introduced Suzuki Alto again in a new shape and design in 2019. Suzuki Alto is the replacement for the Suzuki Mehran. As the production of Suzuki Mehran has reached an end.
At the end of the year 2022, and the start of 2023, Suzuki Alto booking in Pakistan is closed. Find the details below.
INDUS MOTORS COMPANY
Toyota Indus is also known as Indus Motor Company Limited. It is the authorized assembler and manufacturer of Toyota and Daihatsu vehicles, auto parts, and accessories. It is based in Karachi. Indus Motors is a joint venture between the House of Habib, Toyota Tsusho, and Toyota Motors. It is working since 1990. It has a huge manufacturing plant located at Port Bin Qasim, Karachi.
Honda Atlas is also one of the leading automobile manufacturers in Pakistan. It is based in Lahore. Honda Atlas is a joint venture between Honda Motor and Atlas Group. It is operational since 1992. Honda Atlas is the only authorized manufacturer and assembler of Honda vehicles in Pakistan. Honda makes luxury and expensive cars in Pakistan.