Automotive Industry

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.[2] 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. An example of an emerging heavy industry is automobile manufacture, which has soared during the reform period. In 1975 only 139,800 automobiles were produced annually, but by 1985 production had reached 443,377, then jumped to nearly 1.1 million by 1992 and increased fairly evenly each year up until 2001, when it reached 2.3 million. In 2002 production rose to nearly 3.3 million and then jumped again the next year to 4.4 million. Domestic sales have kept pace with production. After respectable annual increases in the mid- and late 1990s, sales soared in 18 the early 2000s, reaching 3 million automobiles sold in 2003. With some governmental controls in place, sales dipped to 2.4 million sold in 2004. Sales automobiles and vans reached 13 million in 2010. So successful has China’s automotive industry been that it began exporting car parts in 1999. China began to plan major moves into the automobile and components export business starting in 2005. A new Honda factory in Guangzhou was being built in 2004 solely for the export market and was expected to ship 30,000 passenger vehicles to Europe in 2005. By 2004, 12 major foreign automotive manufacturers had joint-venture plants in China. They produced a wide range of automobiles, minivans, sport utility vehicles, buses, and trucks. In 2003 China exported US$4.7 billion worth of vehicles and components, an increase of 34.4 percent over 2002. By 2004 China had become the world’s fourth largest automotive vehicle manufacturer.

Renault Trucks ventures into Pakistan, anticipates higher demand from CPEC

KARACHI  : Renault Trucks, in partnership with Ghandhara Nissan Limited (GNL), introduced the full range of its vehicles to Pakistan’s market, keeping in view the demand coming from the China-Pakistan...

NLC, Daimler AG sign MOU for local production of Mercedes Benz Trucks

National Logistics Cell (NLC) has signed Memorandum of Understanding (MOU) with Daimler AG for local production of world renowned Mercedes-Benz trucks by NLC in Pakistan. Local assembly of Mercedes-Be...

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PM Abbasi welcomes Volkswagen’s entry in Pakistan

KARACHI: Prime Minister Shahid Khaqan Abbasi has welcomed on Wednesday Volkswagen’s decision to invest and undertake business ventures in Pakistan, assuring the world’s largest automaker of complete f...

Belt and road initiative take auto industry globally

Belt and Road Initiative takes auto industry globally

Industry insiders have hailed China’s supportive policies as the backbone of expanding international automobile partnerships linked to the Belt and Road Initiative. Cui Dongshu, secretary-genera...

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Auto sector set to make big gains from CPEC

LAHORE: The demand for four-wheel vehicles will rise from 0.25 million to 0.5 million in Pakistan within the next 12 years, according to a report by the Small and Medium Enterprises Development Author...

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CPECB has become medium to connect Chinese Businessman

[responsivevoice voice=”UK English Female” buttontext=”Listen to this”] China Pakistan Economic Corridor Businessman network has earned the title of honored and respected busin...

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Pakistan starts assembling Chinese passenger car

KARACHI: The first Chinese passenger car is now being produced in Pakistan, a market that is currently dominated by three Japanese carmakers. The company has recently invested Rs1.3 billion to improve...