Automotive industry in Pakistan

The automotive industry in Pakistan 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.
Currently there are 3200 automotive manufacturing plants in the country, with an investment of ₨92 billion (US$870 million) producing 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly ₨50 billion (US$470 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 Asia. Over 180,000 cars were sold in the fiscal year 2014-15, rising to 206,777 units fiscal year 2015-16.

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. In response, Renault, Nissan, Kia, SsangYong, Volkswagen and Hyundai have expressed interest in entering the Pakistani market. Pakistan has not enforced any automotive safety standards or model upgrade policies. Obsolete vehicles including the Mehran, Bolan, and Ravi continue to be sold by Pak Suzuki.

History

Early years (1950–1969)

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.
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 the CJ 5, CJ 6, CJ 7 series Jeep. 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.

Nationalisation (1970–1989)

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

Deregulation (1990–2009)

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 Motors Company began production of Toyota Corollas. In 1994, the Pakistan Automotive Manufacturers Association formed, and Honda Atlas introduced manufacturing of the Honda Civic. In 1995, the Engineering Development Board inaugurated the PAP show.
From 2002 to 2007, Small Assemblers and many Bike importers started assembling of Replica CD70CC with Chinese collebration, in the year annual production of bikes reached its higher level auto sales reached record sales year after year, reaching a peak of 195,688 sales in 2007, during this period Afzal Motors began local assembly of Daewoo buses and trucks under license from Daewoo Bus, South Korea and Tata Daewoo, 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.

Rapid growth (2010–present)

In 2010 the sales rebounded and began increasing again. The auto industry predicted a growing demand in Pakistan and invested over ₨20 billion (US$190 million) during this decade. Motorcycle production hit a record level in 2016-17, with 2.5 million units made. In 2015, the Auto Policy 2016-21 was introduced, to help lure new automakers, 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

Pak Suzuki Motors

Pak Suzuki Motor Company (PSMCL) is a Pakistani affiliate of Japanese automaker Suzuki. It is the Pakistani assembler and distributor of cars manufactured by Suzuki and its subsidiaries and foreign divisions. Currently Pak Suzuki is the largest car assembler in Pakistan. Most vehicles are produced and sold by Paksuzuki including the Mehran, Bolan, Ravi, Cultus and Swift are obsolete vehicles sourced from Suzuki Japan that do not confirm to modern automotive safety or emission standards . Very few vehicles manufactured by Pak Suzuki have airbags. The company's highest selling models, Suzuki Mehran, is a very basic vehicle that does not even have side vents for air conditioning and rear window defogger and the same model was in production between 1988-2017 with very minor cosmetic changes.

Pak Suzuki Motors

Type Public
Traded as KSE: PSMC
Industry Automotive
Founded 1983; 35 years ago
Headquarters Karachi, Pakistan
Area served South Asia
Products Suzuki Automobiles
Revenue Increase ₨84.548 billion (US$800 million) (2015)
Net income Increase ₨5.842 billion (US$55 million) (2015)
Parent Suzuki Motor Corporation Pakistan Automobile Corporation Limited
Website www.paksuzuki.com.pk

History

The firm was founded in September 1982 as a joint venture between the government of Pakistan and Suzuki Motor Japan, formalizing the arrangement by which Awami Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki originally owned 25% of the stock, and have gradually increased their holding; they now own 73.09%. Pak-Suzuki was a joint venture between the semigovernmental Pakistan Automobile Corporation (PACO), who had earlier overseen local assembly from kits. Pak Suzuki is the market leader in Pakistan Automobile Market by having more than 60%(December, 2011) of market share. Lacking serious competition, Pak Suzuki has had a market share of more than 50% since its inception and has complete monopoly in the small car segment. Apart from giving automobile related services like Suzuki Finance and Suzuki Insurance, Pak Suzuki also deals in Pak Suzuki Certified Used Cars.

Having assembled both the Carry and Jimny locally since 1976, Suzuki's first locally built product was the 800 cc ST90 Carry van and truck. 25,000 per year was the beginning production. By 1984 the 1000 cc Jimny (SJ410) and 800 cc Alto/Fronte (called "FX") had been added to the lineup, and a second plant was planned for 1985. Cars built by Suzuki Pakistan often lack essential features which are standard in other cars, such as airbags, rear windshield defogger and rear seat belts. In 2006, Pak Suzuki offered factory-fitted CNG two years after rival Dewan Motors started offering the facility in their locally assembled Hyundai Santros. By 2012 the Pakistani-assembled Suzuki Mehran remained possibly the last car in the world which still used a carburetted engine, but from the end of 2012 Suzuki Mehrans have been equipped with EFI engines to meet the old Euro-II emission standards.As of 2017, the car still remains in production. As a joint venture, Pak Suzuki is also investing in an automobile glass manufacturing company.[9]...................

Current cars

Suzuki Ravi

Main article: Suzuki Ravi

Pickup version of the globally obsolete 1979–1985 Suzuki Super Carry. Sold only in Manual transmission. The car is not sold in any other country outside Pakistan and was retired from Japanese and European markets in the 1980s.

Suzuki Bolan

Main article: Suzuki Bolan

The Suzuki Bolan also called "Carry Daba" sold in Pakistan by Suzuki is essentially a local version of the globally retired 1979–1985 Suzuki Super Carry. The car does not meet any international safety standards - it lacks airbags, abs, and even rear seat belts. It is only offered in manual transmission.

Suzuki Wagon R

Main article: Suzuki Wagon R

Pak Suzuki launched the new Wagon R on 18-April-2014 using the chassis code A1J310. It comes with three variants of Wagon R – VX, VXR and VXL – in 9 body colours. The Wagon R gets the 998 cc K10B three-cylinder Euro 2 compliant engine that develops 67 hp @ 6,200 rpm and 90 Nm @ 3,500 rpm. It is paired to a 5-speed manual transmission.

Suzuki Cultus

A Second generation of cultus was launched in pakistan in 2017 after replacing obsolete cultus first generation (2000-2017) the new cultus is a second generation and a rebaged version of Suzuki Celerio which was launched in 2014.

Suzuki Swift

Main article: Suzuki Swift

2010 to date. The third generation Swift has been launched by Pak Suzuki in 2010 after being retired in all other countries. It uses the same M13A engine which liana has. The Pak Suzuki Motors version of the Swift is a variant of the international 2004-2010 Suzuki Swift 1.3 but with much lesser features. The Pakistani model lacks airbags, luggage area light, force limiters, UV glass, and rear view wiper and washer which was standard in the international version when it was being sold from 2004-2010. The Swift is available in three trims: the DX (no alloy rims, different grill, no fog lamps, and no matching color side view mirrors), the DLX (with alloy rims, different grill, fog lamps, matching side view mirrors, and two options for navigation systems), and the Automatic (with all the features and options of the DLX, however with an automatic gearbox). The third generation swift has been discontinued in all other countries and Pakistan is the only country where it is still being produced.

Suzuki Mega Carry

Mega Carry was a pickup version of Suzuki APV launched in 2017

Former cars

Suzuki Khyber

This article is incomplete. Please help to improve it, or discuss the issue on the talk page. (August 2009)
Production closed on 2000 replaced with the Suzuki Alto. Based on First generation Cultus.

Suzuki Alto

Main article: Suzuki Alto

Suzuki Alto

Produced between 2000-2008. The Suzuki Alto HA12 chassis fitted with an obsolete 1982-1984 Suzuki F10A 970 cc engine, manufactured by Pak Suzuki Motors under the chassis code RA410. The engine was same as the locally manufactured Suzuki Potohar, though the fuel ignition system was a more modern, electronic distributor. Pak Suzuki Alto RA410 maintained a carburetor based engine throughout its manufacturing phase (2000-2012). Although the Pakistani assembly of the Alto has stopped as of June 16, 2012, if retailers wish to sell it they could purchase it from Suzuki's other affiliates such as Suzuki in Japan, though it would be more expensive. The car did not meet any international safety or emission standards.

Suzuki Baleno

Main article: Suzuki Baleno

The SY413 Baleno (also known as the Cultus Esteem and Esteem in other countries) was assembled in Pakistan starting 1998 as a replacement of Suzuki Margalla, till 2006 when it was replaced by the Liana.[3] When introduced, it featured a number of improvements over Margalla, such standard power steering, wider tyres (175/70R13 vs 155/80R13), tachometer as standard, 4-spoke steering wheel vs. 2-spoke steering wheel of Margalla, black interior vs grey interior, EFi vs carburettor and 16-valve vs 8-valve. It featured the G13BB engine, though on the chassis plate throughout the entire run it was stamped as G13B. Initial trim levels included GL, GXi, Gli and GliP (also known as Gli Plus). Baleno featured highly advanced technology at its time, as it was the first one to offer distributorless EFi. Despite this, the car has difficult sales period till 2002 when a facelift was launched featuring crystal headlamps and revised grille. CNG version was also offered soon. Trim levels in the facelift model included JXR and JXL. Baleno Sport also saw a limited run. In the very initial days before local assembly, a few specimen were imported from Japan by Pak Suzuki Motors to test the market. These featured a SOHC G16B engine with electronic fuel injection but fuel ignition by camshaft driven electronic distributor. This car remains a rare item in the used car market normally known as Baleno 1.6 or Baleno Gti. Although the car ran without problem using petrol, the CNG versions faced various problems such as backfire and burning of coils. Replacing the engine with an EFi 1.5L G15A is a popular swap (G15A does not use distributorless ignition, coil-on-plug or waste-spark-discharge). Reasons being simpler to maintain, higher power output and greater fuel economy.

Suzuki Cultus

Main article: Suzuki Cultus

Produced between 2000-2017. Suzuki Cultus was launched in 2000 as a successor to the popular Suzuki Khyber. It is a basic version of globally obsolete Suzuki Cultus Generation 2 as produced in Hungary from 1992 to 2003, with a carburetted 993 cc G10 three-cylinder engine.From 2003 up to 2010 CNG kit was offered as a factory-fitted option. In August 2008, the engine was upgraded to a 4-cylinder 993 cc G10B EFi engine. The EFi was not distributorless and a camshaft-driven electronic distributor was utilized for spark generation. The new engine provided better fuel economy, power delivery and acceleration. Since 2003, the car is not being manufactured or sold in any country outside Pakistan. The car does not meet any safety standards and lacks critical safety features like abs, and airbags. It is only offered in manual transmission. The car recently[when?] received a facelift, known as Suzuki Cultus Executive Version, which included body-coloured side-mirrors, alloy wheels, new seat and door fabric and a new sound system.

Suzuki FX

Main article: Suzuki FX

Produced between 1982-1988. A modified version of the Suzuki Alto SS40 manufactured under the chassis code SS80, with a 796 cc F8B engine. Early models came with black interior, later changed to beige interior improving the aesthetics by making it appear spacious. Later models remained popular for this reason. A/C was available as an option in some years. Production was discontinued and Suzuki Mehran was launched as a replacement in 1989.

Suzuki Kizashi

Main article: Suzuki Kizashi

The Suzuki Kizashi was introduced in Pakistan in 2015 and discontinued in 2016.The car was offered in Pakistan after being retired globally. It was sold for 50000 USD.

Suzuki Liana

Main article: Suzuki Liana

The Suzuki Liana sedan, originally with 1.6-litre engines, replaced the Baleno.[3] The car was pulled out from all other markets in 2007 and since 2007, Pakistan was the only place left where the Liana was still being assembled and sold till 2012. It was also exported in small numbers to Bangladesh in the past, however, being an obsolete car it has lost its export potential. Sold as the Liana VURV it had the 1.3 litre Suzuki M13A engine and was offered in Manual transmission only. The Pakistani model lacked airbags which were offered in all other countries.

Suzuki Margalla

Main article: Suzuki Margalla

The sedan shape of Suzuki Cultus second generation was initially (1990) imported from Japan to test the market and sold under the name Suzuki Sedan (possibly because it was the first sedan body style offering by Pak Suzuki Motors). It bore a chassis code SF310 and came with a carburetted 3-cylinder 993 cc G10 engine. The market reception was good though the audience complained of low power. The same car was considered for local manufacture as an entry level executive car. Manufacture started 1992 under the name Suzuki Margalla, chassis code SF413 using an 8-valve SOHC 4-cylinder G13 carburetted engine. It came with power steering as an option. Tachometer was not available in any of the variants. The car was offered in variants such GL and GLX, with an upgrade variant called Margalla Plus launched later on. Production was ceased in 1998 to give way to the replacement Suzuki Baleno. To date in the used car market Suzuki Sedan means 1000 cc import model, whereas Suzuki Margalla means local assembly 1300 cc, two names of the same car.

Suzuki Mehran

Main article: Suzuki Mehran

Suzuki Mehran Began production 1988 as the "Alto", but renamed to Mehran in 1992. A very basic version of the globally obsolete Suzuki Alto CA71 (Maruti 800 in India and Nepal), with a 796 cc engine, manufactured by Pak Suzuki Motors under the chassis code SB308. The car has long been retired in all other countries and Pakistan is the only country where it remains in production to date. It was discontinued in the European and Japanese markets in 1988. The Mehran was sold as bi-fuel petrol/CNG since 2006 to early 2012. (The option of CNG was dropped from the entire Suzuki line-up due to government ban on CNG kits and cylinders.[10]). It received minor facelifts in 1998 and again in 2004. However, the car still lacks basic safety features such as rear window demister, airbags, abs and even rear seat belts. The Mehran received a basic EFi Engine in July 2012 to comply with government regulation adopting the outdated Euro-II emissions standard. It was the same old F8B engine with single point fuel injection. The fuel ignition system was also upgraded to CDI, reducing the cost and downtime associated with the replacement of breaker points as routine maintenance. As per user reviews, the upgraded engine provided improved power delivery, throttle response, acceleration and fuel economy, though company specifications were never changed to reflect this. Users who installed aftermarket CNG kits also availed increased CNG fuel economy due to the CDI distributor. (The same engine upgrade was also implemented on the Suzuki Ravi and Suzuki Bolan who share the same engine. This made Pakistan the last car producing country to shift entirely from carburetted engines to EFi). Mehran is currently available in VX or VXR equipment levels. It had again received a mild facelift with an asymmetric grille at the same time with the introduction of the EFi engine. It has 29.4 kW (40 PS).[11] CNG has been reintroduced for Mehran in September 2015, although the availability of CNG in Pakistan remains limited due to severe shortages. As of 2017, the car has finished production and still popular and favorite among the locals.

Suzuki Potohar

Main article: Suzuki Potohar

The Suzuki Samurai as produced by Spain's Santana Motors from 1985 to 2003 with an international 1982-1984 Suzuki F10A 970 cc carburetor engine. Pak Suzuki Motors manufactured it under the name Suzuki Potohar using the chassis code SJ410. The fuel ignition system was legacy distributor with breaker points. A common after-market upgrade was to replace the stock distributor with the one that came with the locally manufactured Suzuki Alto. Only SWB versions were offered. Initial models came with 4-wheel drum brakes though later it was upgraded with front-wheel disc brakes as standard. Factory-fitted CNG was offered in some years as well. Potohar was popular due to high ground clearance, low-end torque, capable 4x4, low fuel consumption and easy maintenance. In 2006, Potohar was discontinued with no locally manufactured replacement. Rather Suzuki Jimny with M13A engine was offered as an import model at nearly twice the cost.

Motorcycles

Suzuki Sprinter ECO

110cc Basic features bike with EURO 2 engine technology.

Suzuki Sprinter Standard

Upgrade model of Sprinter ECO.

Suzuki Sprinter Deluxe (Raider)

110cc bike with EURO 2 engine technology. Production started in the 4th Quarter of 2012.

Suzuki GD-110

110cc bike with EURO 2 engine technology. Currently being imported from China in CKD form with price of 119,000 PKRs.

Suzuki GD-110S

110cc bike with EURO 2 engine technology with electric start system. Currently being imported from China in CKD form. Fuel average is 44 km/h Price Rs 131,000 But spare parts are very expensive Self starter (Deluxe Model of GD-110) Self Start and Alloy RIM. This is basic difference between 110 and 110S.

Suzuki GS-150/150SE

150cc Bike. Most powerful engined bike manufactured locally with electric start system.It is one of the most selling bike in Pakistan.

Suzuki GR-150
Suzuki Inazuma
Suzuki Inazuma Aegis
Suzuki GSX-R 600

Honda Atlas

Honda Atlas is a Pakistani automobile manufacturer and joint venture between Honda Motor and Atlas Group, based in Lahore, Pakistan since 1992. Honda Atlas is the authorized assembler and manufacturer of Honda vehicles in Pakistan.

Honda Atlas Cars Pakistan Ltd.

Honda-logo.svg

Type Joint venture
Traded as KSE: HCAR
Industry Automotive
Founded 1992
Headquarters Lahore, Punjab, Pakistan
Key people Hironobu Yoshimura, CEO
Products Automobiles
Parent Honda
Website Official website

History

Honda Atlas was incorporated on 4 November 1992, while the joint venture agreement was signed on 5 August 1993. The manufacturing plant was inaugurated 17 April 1993 and the first car rolled off the assembly line on 26 May 1994. By July 1994, six dealerships were established in Karachi, Lahore, and Islamabad .

Pak Cars Guru

Top Ad unit 728 × 90

Breaking News

Automotive industry in Pakistan