Car production in Pakistan takes a massive jump of over 52%
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The government of Pakistan has granted greenfield status to 21 automakers to manufacture passenger vehicles as well as commercial vehicles under the Automotive Development Policy (ADP) 2016-21.
Ministry of Industries & Production (MoIP) has stated that new automakers from Korea, Europe, China, and Malaysia have entered the auto industry, bringing with them a total investment of over $1.0 billion.
The MoIP further highlighted that these seven automakers have been given manufacturing certificates in the auto sector:
- United Motor Limited, - Regal Automobile Industries Limited, - Master Changan Motors Limited, - Lucky Motor Corporation Limited, - Hyundai Nishat Motors Limited, - Sazgar Engineering Works Limited, - Al-Haj Automotive.
The manufacturing facilities of other companies such as MG JW SEZ are under development. The total production capacity of Pakistan’s automotive industry has increased from 275,000 units to 418,500, up 52.2 percent, units a year. It is expected to increase further as some new car companies are also inbound.
Foton JW Auto Park (Pvt.) Limited has been granted Greenfield Status under ADP 2016-21 to locally manufacture Forland light trucks. Al-Haj Bus Company, Khalid and Khalid (Shacman), Dysin Automobiles (Sinotruck), and Universal Motors (Higer Bus) are the major new entrants in the Heavy Commercial Vehicle (HCV) segment and are expected to start local assembly operations this year.
The government also defined a new tariff plan with the objective to curb the misuse of the import policy. Furthermore, the reimbursements on account of delayed deliveries have been made to the customers, and installation of immobilizers has been made mandatory in cars and Light Commercial Vehicles.
The Pakistani car industry has acceded to UNECE’s WP 29 Regulations under the official symbol E-64, which binds it to follow safety and environmental regulations for locally assembled vehicles.
According to Ministry officials, the Auto Industry Development and Exports Plan (AIDEP) 2021-26 has been prepared based on learnings and experiences gained from the implementation of ADP 2016-21. They added that the relevant departments are jointly improving the application of the AIDEP 2021-26 to ensure further growth of the industry.
