Automotive industry in Pakistan

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The Pak Suzuki Mehran is Pakistan's most produced car.

Pakistan’s automotive industry is the one of the fastest growing industries of the country, accounting for 4% of Pakistan's GDP and employing a workforce of over 1,800,000 people.[1] Currently there are 3200 automotive manufacturing plants in the country, with an investment of 92 billion (US$880 million) producing 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly 50 billion (US$480 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 among the smallest, but fastest growing in South 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, Kia Motors, Audi, Volkswagen[7] and Hyundai[8] have expressed interest in entering the Pakistani market.[2][9] Pakistan has not enforced any automotive safety standards or model upgrade policies. Obsolete vehicles including the Mehran, Bolan, Ravi, Cultus continue to be sold by Pak Suzuki.[10]



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 production of car batteries in 1953. Haroon Industries partnered with Dodge Motors in 1956.[11]


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 Jeep CJ 5, CJ 6, CJ 7. 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.


The 1970s saw nationalization of many companies. In 1972, the Pakistan Automobile Corporation or 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 Tractor to Millat Tractor. Dawood Yamaha introduced Yamaha motorcycles in 1974 and in the same year Beta Engineering started producing diesel engines. In 1976 Suzuki Motor Cycle 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, 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, Hino Motors & TTC. In 1987, Ghandara Nissan began production of Nissan Diesel Trucks. In 1989, Pakistan Association of Auto Parts & Accessories Manufacturers began operation.


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 Motor Company began production of Toyota Corollas. In 1994, the Pakistan Automotive Manufacturer Association formed, and Honda Atlas introduced manufacturing of the Honda Civic. In 1995, the Engineering Development Board inaugurated the PAP show.


From 2000 to 2007, auto sales reached record sales year after year, reaching a peak of 195,688 sales in 2007, 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.


In 2010, auto sales rebounded and began increasing again. The auto industry predicted a growing demand in Pakistan and invested over Rs20 billion during this decade. Motorcycle production hit a record level of over 1.5 million units in 2010-2011. In 2015, the Auto Policy 2016-21 was introduced, to help introduce new entrants into the Pakistan auto industry, 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 1000 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 [12]

Historical production by year[edit]

Year Data[13] 0—50,000 50,000—100,000 100,000—150,000 150,000—200,000 > 200,000
1992 66,000  
1993 76,000  
1994 61,000  
1995 44,000  
1996 48,419  
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 235,647  

Car manufacturers[edit]

Pak Suzuki Motors[edit]

Main article: Pak Suzuki

Pak Suzuki was founded in September 1982 as a joint venture between the Government of Pakistan and Suzuki Japan, formalizing the arrangement by which Awami Auto would produce the Suzuki SS40.[14] Suzuki originally owned 25% of the stock and over the years has grown to 73.09%.[15] Pak Suzuki was a joint venture between the state-owned Pakistan Automobile Corporation, who had earlier overseen local assembly from kits.[16] All vehicles produced and sold by Pak Suzuki are globally retired models sourced from Suzuki Japan, that do not meet any consumer safety standards or modern emission standards. Pak Suzuki motors was once the market leader in Pakistan, with over 60% share of the domestic market. Pak Suzuki is heavily criticized for selling third rate vehicles with zero safety and comfort features at very high prices eventually. Over the past 10 years, Pak Suzuki's share in the domestic market has been dropping. Pak Suzuki manufactures the following models in Pakistan:

Honda Atlas[edit]

Main article: Honda Atlas

Honda Atlas Cars is a joint venture between Honda Motor Company Limited, Japan and the Atlas Group, Pakistan. The company was incorporated on November 4, 1992 and a joint venture agreement was signed on August 5, 1993. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges. On July 14, 1994, booking of Honda cars started at six dealerships in Karachi, Lahore and Islamabad. Since then, the company has developed twenty one 3S dealers (Sales, Service and Spare Parts) twenty 2S dealers (Service and Spare Parts) and six 1S dealers (Spare Parts) network in all major cities of Pakistan.[19][20]

Models produced include:


Indus Motor[edit]

Main article: Indus Motors Company

Indus Motor is a joint venture between the House of Habib, Toyota Motor Corporation, Japan and Toyota Tsusho Corporation for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 1, 1990. Indus Motor Company are manufacturers, assemblers, distributors and importers of Toyota and Daihatsu vehicles, spare parts and accessories in Pakistan. Models produced include:


Ghandhara Nissan[edit]

Main article: Ghandhara Nissan

The Ghandhara Nissan Limited (GNL), was incorporated in 1981 as a Private Limited Company having the sale licensee for the distribution of Nissan vehicles in CBU condition in Pakistan, later in 1992 it was converted into a Public Company listed in Karachi Stock Exchange. Ghandhara Nissan has Technical Assistance Agreement with Nissan, Japan and joint Venture Agreement with Nissan Diesel Company, Japan for the progressive Assembly of Passenger Cars, Light Commercial Vehicles and Heavy Duty Vehicles. Ghadhara Nissan's Car and Truck Plants are located at Port Qasim, Karachi, adjacent to each other. Ghandhara Nissan is a group Company of Bibojee Services (Private) Limited. On January, 1997, Ghandhara Nissan announced "Nissan passenger cars are now being assembled at Ghandhara Nissan's plant under the direct supervision of Japanese engineers."[1]. However, after it was later discontinued and currently no passenger cars are being assembled at Gandhara.

Commercial vehicles[edit]

Hinopak Motors[edit]

Main article: Hinopak Motors

Hino Motors Japan and Toyota Tsusho Corporation in collaboration with Al-Futtaim Group of UAE and PACO Pakistan formed Hinopak Motors Limited in 1986. In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other two founding sponsors. This decision to invest in Hinopak at a time when the country's economy was passing through a depression and the sale of commercial vehicles was at an all-time low reflects the confidence our Principals have in our company and their commitment to the Pakistani market. Hinopak is the trusted market leader with over 50% share in the Pakistani Truck and Bus industry.

Al Ghazi Tractors[edit]

Main article: Al-Ghazi Tractors

Al Ghazi Tractors is a commercial vehicle manufacturer in Pakistan who manufacture New Holland tractors and generators in collaboration with Fiat New Holland. Models produced include:

  • New Holland 480S
  • New Holland 640
  • New Holland 640S
  • New Holland NH 55-56
  • New Holland NH 60-56
  • New Holland NH 70-56(4WD)

Master Motors[edit]

Main article: Master Motors

Master Motors is a lorry manufacturer based in Port Qasim, Karachi, Pakistan as a part of the Master Group of Industries. Master Motors signed an agreement with Mitsubishi Fuso Truck and Bus Corporation (Daimler AG has come to hold 85% of the company[21]) to manufacture and assemble Mitsubishi Fuso-based trucks and buses in Pakistan. It has developed into the leading brand in Pakistan in the 3 ton trucks (25% market share) and 312 and 412 ton trucks (50% share).

Models produced include:

  • Highland - 112 tonne lorry
  • Forland Super - 3 ton truck
  • Econo - 312 tonne lorry
  • Grande - 412 tonne lorry
  • Rocket - 612 tonne lorry
  • M-410B Bus - 25-30 passenger bus


Hyderabad is hub of Two wheeler and 3 wheeler Vehicles in Pakistan.While Karachi is a hub for automobile manufacturing. It is also noted that most of the automotive companies are set up in Karachi.


Suzuki motorcycles produced in Pakistan include:

  • Suzuki Sprinter ECO
  • Suzuki GS 150 cc
  • Suzuki GD 110cc


Main article: Yamaha Motor Pakistan

In 1976, under the umbrella of the Dawood Group of companies, Dawood Yamaha Limited (DYL) was formed in a joint venture with Yamaha Motor Company (YMC), Japan. The joint venture with YMC ended and DYL introduced a new product the YD-70 Dhoom in the year 2008. The Dhoom is the economical cousin of the YB-100 Royale which has been produced in Pakistan for the last thirty years, and most recently the YD-100 Junoon, which was designed and engineered by in Pakistan. Its sister company Balochistan Engineering Works (BEWL) produces the frame, fuel tank, rear arm, fenders, gears, hubs, leavers, crank and cover cases. The assembly plant for our motorcycles is based in Uthal, where the plant manufactures motorcycles in accordance with very high quality standards laid down by Yamaha Motor Company, Japan. Since 2013 DYL and its sister concern BEWL facilities have been shut down and currently production is being carried out at Brighter Engineering (Pvt) Limited at Lahore. The company are in sever financial crises and not able settle creditors, financial institutions, and employees full and final settlement. SITARA GUANGTA SITARA AUTO IMPEX, Karachi, Pakistan Assembler of SITARA GUANGTA motorcycles is one of the main contributor in Changes of Govt. Policy for bike assembling owner of SITARA, Mr. Muhammad Sabir Shaikh who is the Chairman of Association of Pakistan Motorcycle Assemblers APMA ( did a lot in last 20 years for the betterment of Chinese-based bike assembling in Pakistan.


  1. ^
  2. ^ a b "Automobile industry: Pakistan woos Renault-Nissan in investment push - The Express Tribune". The Express Tribune. 2016-05-07. Retrieved 2016-11-15. 
  3. ^ "Car sales continue to shoot up - The Express Tribune". The Express Tribune. 2016-02-12. Retrieved 2016-11-15. 
  4. ^ "Pakistan auto industry rides a high". Business Recorder. Retrieved 2016-11-15. 
  5. ^
  6. ^ "Auto policy approved, door wide open for new entrant - The Express Tribune". The Express Tribune. 2016-03-19. Retrieved 2016-11-15. 
  7. ^
  8. ^
  9. ^ "Audi AG expresses intent to assemble vehicles in Pakistan - The Express Tribune". The Express Tribune. 2016-11-15. Retrieved 2016-11-15. 
  10. ^ "Auto industry enjoys unequaled run of success - The Express Tribune". The Express Tribune. 2016-02-08. Retrieved 2016-11-15. 
  11. ^
  12. ^ "Automark Magazine". 
  13. ^
  14. ^ Mazur, Eligiusz, ed. (2006). World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. p. 214. ISSN 1734-2945. 
  15. ^ "History". Pak Suzuki Motor Co. Ltd. Retrieved 2012-12-27. 
  16. ^ "Suzuki considers turning out vehicles in Pakistan". Nihon Keizai Shimbun. Tokyo: 7. 1980-10-07. 
  17. ^ "Suzuki Mehran". Pak Suzuki Motor Co. Ltd. Retrieved 2012-12-27. 
  18. ^ [1]
  19. ^ Honda Cars
  20. ^ Honda Pakistan
  21. ^

External links[edit]