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Automotive Industry Boom in Pakistan


Posted on 28/Aug/2018

ProPakistan.pk Team.


With the increase in global living standards, there has been a surge in demand for goods. Pakistan has seen a 7.5% increase in per capita incomes when measured in rupee terms. With the abundance of wealth in households, there is no surprise in seeing a surge in asset accumulation, mainly in the automobile sector. The automotive industry in Pakistan is experiencing a great boom as all top auto companies such as Honda, Toyota and Suzuki have earned huge profits. Due to growth in the auto sector, per capita income is rising in Pakistan and not only improving the finances of the auto sector but the total economy of the country. Let's have a brief look at all the information and causes related to the flourishing automotive industry in Pakistan.

The Flourishing Automobile Industry of Pakistan Reports have shown that the automobile industry is experiencing a boom as the automobile sales have been rising for the last decade. Pakistan is the 6th largest populated country and has half of its population living below 30 years. The penetration of car stands at as low as 13 vehicles per 1000 persons and an increasing per capita income Pakistan offers huge potential for growth to global car-makers. It is, therefore, essential to reach out to this huge business on a platform that is most accessible. Websites like Pakwheels.com are a new and innovative way to connect with the customers in providing them with the products especially those that are high in demand.

The Current Progress of Main Automobile Companies in Pakistan Suzuki Pakistan is playing an important role to boost the business of automobile in Pakistan. Suzuki has become the leading brand by introducing the New Cultus, Suzuki Carry, Suzuki Vitara, Suzuki Ciaz, Suzuki GR150 and Suzuki GSX-R600 all in the last year. As a matter of fact, Suzuki has become the only company in Pakistan which is offering the product in all prominent sectors like a hatchback, sedan, SUV, loaders, and even motorbikes. Though Honda didn't have a smooth ride last year but hope to do better in the coming days.


Toyota is famous for its huge sales of cars in Pakistan. It is heading in progress as usual. It is estimated that in 2015 Toyota sold 57,000 cars, which is a record in the car history of the country. They have surpassed manufacture capacity which is regularly 54,800 units a year.

New manufacturers have also arrived in the automobile market to make the industry booming. Let us has a look at these new companies:

Nishat Hyundai Motor Hyundai Nishat Motor has signed an agreement with Pakistani government for the assembling and launching of vehicles of Hyundai in Pakistan. In this regard, a ground-breaking ceremony held by the Hyundai Nishat Motor for its assembly plant in Faisalabad.

KIA Pakistan When it comes to KIA, the company has not made an official appearance in Pakistan, however, their cars have been spotted testing multiple times on the roads of Pakistan so that is an obvious hint that KIA will be making an official entry somewhere next year as they have made multiple deals with the government this year. KIA-Lucky Motors has signed an agreement with the Ministry of Industries and Production.

HRL Motors HRL motors also made a surprising move by bringing the Zotye Z100 to Pakistan which is based on the 7th Gen Suzuki Alto and is priced near to PKR12 lakh rupees. With that said HRL motor plans to bring a sedan and SUV also somewhere next year. HRL Motors brought Zotye Z100 in Pakistan Besides these, many multiple manufacturers including VW Group, Renault, Scania, Great Wall, and ISUZU have announced their plans to invest in Pakistan very soon which came as a great news for the industry. Renault signs MoU with Majid Al Futtaim to set up car production plant in Pakistan.

Investment in the auto industry is important as it is one of the main driving elements of economic growth, stability and technological advancement apart from being a main taxpayer and employer. Currently, car assemblers in Pakistan pay about 4% to the country's taxes. Pakistan has a huge potential to further strengthen its automobile sector and with overseas investment contributing to the boom. The time to act is now.

ProPakistan.pk Team

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