Automotive industry in Pakistan

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The Automotive industry is one of Pakistan's growing industries dominated by Japanese-manufacturer's, most of whom have assembly plant's in the country. Pakistan’s market is considered among the smallest but the fastest growing in South Asia, with 180,000 cars were sold in the 2014-15 fiscal year, rising to 206,777 units 2015-16 fiscal year.[1][2][3] The market is dominated by three Japanese automobile companies, Toyota, and Suzuki, each of the two has assembly plant's in Karachi and Honda has its plant in Lahore , all co-owned with local partners.[4]

The auto policy passed on March 19, 2016, which offers tax incentives to new entrants to help them establish manufacturing units.[5] In response, Renault-Nissan and Audi have expressed interest in entry into Pakistan's automobile industry.[1][6]


According to Ministry of Industries, Pakistan produced its first vehicle in 1953, at the National Motors Limited, established in Karachi to assemble Bedford Trucks. Subsequently buses, light trucks and cars were assembled in the same plant. The industry was highly regulated until the early 1990s. After deregulation, major Japanese manufacturers entered in the market thereby creating some competition in this sector. Assemblers of HINO Trucks, Suzuki Cars (1984), Mazda Trucks, Toyota (1993) and Honda (1994) in particular, entered once deregulation was introduced. Assembly of Daihatsu and Hyundai cars (1999) and various brands of LCVs and range of mini-trucks commenced recently.

From 1953 to 2011, the journey of auto industry has been rough, tough and sometime very smooth. Car industry saw boom in 2006-2007 when sales touched record peak of 180,834 thanks to rising car financing up to 70-80 per cent by banks due to low interest rates and rising rural buying. Since then the industry has been surviving hard to reach the same sales level amid high interest rates and Yen appreciation against the rupee but high farm income is giving much support to car sales. Good crops this year will keep the car sales brisk despite increase in prices.

The car industry has invested over Rs 20 billion in the last four to five years to meet growing demand. The direct employment in car industry hovers between 5,500-6,000 persons.Motorcycle production hit the country's record level of over 1.5 million units in 2010-2011 by the effort of Pervaiz Musharraf Government's decision that opened bike market to low cost Chinese bikes. Auto sector now employs 192,000 people directly and around 1.2 million indirectly and has Rs 98 billion of investments and contributes Rs 63 billion as indirect tax in the national exchequer.

Auto Sector remains the second largest payer of indirect taxes after the Petroleum Sector. In Pakistan's context there are 10 cars in 1,000 persons which is one of the lowest in the emerging economies which itself speaks of high potential of growth in the auto sector and more so in the car production. 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 few years provides a stimulus to the industry to expand and grow [7]

In 2007, the automotive industry made up 2.8% of Pakistan's GDP which is likely to increase up to 5.6% in the next 5 years. It currently contributes 16% to the manufacturing sector which is predicted to increase 25% in the next 7 years. Many cars in the country have dual fuel options and run on CNG which is more affordable and cheaper than petrol in the country.


Pak Suzuki Motors[edit]

Pak Suzuki motors was once the market leader in Pakistan, with over 60% of market share and complete dominance of the small car sector however this figure has dropped considerably and JDM vehicles have overtaken Pak Suzuki owing to the fact of selling third rate vehicles with zero safety and minimal comfort features at very high prices since the past 30+ years.

The firm was founded in September 1982 as a joint venture between the government of Pakistan and Suzuki motor company Japan, formalising the arrangement by which Awami Auto Ltd. had produced the Suzuki SS80 from 1982.[8] Suzuki originally owned 25% of the stock, and have gradually increased their holding; they now own 73.09%.[9] Pak-Suzuki was a joint venture between the state-owned Pakistan Automobile Corporation (PACO), who had earlier overseen local assembly from kits.[10] All vehicles produced and sold by Paksuzuki are globally retired models sourced from Suzuki Japan that do not meet any consumer safety standards or modern emission standards.

Models produced include:

  • FX
  • Mehran[11]) (very basic version of the globally retired Second generation Suzuki Alto 1984–1988)
  • Suzuki Alto (he Suzuki Alto HA12 chassis fitted with a 1982-1984 Suzuki F10A 970 cc engine. Discontinued in 2012)
  • Baleno[8]
  • Cultus (basic version of the globally retired Suzuki Cultus Generation 2)
  • Liana[8]
  • Suzuki Swift (trimmed down version of the international 2004-2010 Suzuki Swift 1.3 without safety features introduced in Pakistan after it was phased out elsewhere)
  • Suzuki Wagon R[12]
  • Suzuki Carry (basic version of the Seventh generation (ST30/40/90) 1979–1985 Suzuki Carry)
  • Suzuki Kizashi (Imported)
  • Suzuki APV (Imported)

Honda Atlas[edit]

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.[13][14]

Models produced include:

Indus Motor[edit]

Indus Motor is a joint venture between the House of Habib, Toyota Motor Corporation, Japan (TMC), and Toyota Tsusho Corporation, Japan (TTC) 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:

Indus Motor also retails the following models imported from Japan:

Ghandhara Nissan[edit]

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]

Hino Pak Motors[edit]

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]

Al Ghazi Tractors is a commercial vehicle manufacturer in Pakistan. Al-Ghazi Tractors's plant manufacture New Holland tractors and generators in collaboration with Fiat New Holland. Since 1991, Al-Futtaim Group of Dubai has been managing the company by acquiring 50% of its shares. Its corporate Head Office is in Karachi, Pakistan.

Models produced include:

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

Master Motors[edit]

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[15]) 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


Ghani Automobile Industries[edit]

Ghani Automobile Industries is a Pakistani manufacturer of motorcycles based in Lahore.

Ghani Automobile is a collaboration of two industrial groups, Ghani Group of Companies & Chongqing Yingang Science and Technology Group Company Limited, and is a public limited company quoted on the stock exchange in Pakistan. Ghani Automobiles is a company of Ghani Group, and is listed on Stock Exchanges. Established in 2004, the company started its commercial production of the two wheelers during 2005. The head office is in Model Town, Lahore, Pakistan while the plant is situated at 49 km Multan Road, Lahore covering an area of approx. 218,000 sq. feet (5 acres).

Models produced include:

  • Ghani Gr-05 CC (Black)
  • Ghani Gi-70 CC (Black & Red)
  • Ghani Gi-100 CC (Black & Red)
  • Ghani GR-100 CC (Hamsaffar Black & Red)
  • Ghani Gi-125-18 (Black)
  • Ghani Gi-150-9 (Black)


Suzuki motorcycles produced in Pakistan include:

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


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.

See also[edit]


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