The local vehicle manufacturing industry, which contributes 4% of the nation's GDP, is crucial to the development and stability of the overall economy. This is one of the main reasons the federal government is doing everything in its power to support the sectors that produce vehicles locally.

The development of affordable hatchbacks and mid-size sedans, two of the most popular car categories in Pakistan, is currently the focus of the public and private industry participants. The majority of the vans and minivans utilised in the nation are utility and commercial vehicles, so there is also a high demand for them.

 

SATURATION OF THE MARKET AND THE LOCAL AUTO INDUSTRY

Pakistan's auto industry is currently built on a saturated market because there are so many imported options available these days. Although the growing number of imported vehicles is undoubtedly bad for the nation's economy, it continuously encourages local automakers and assemblers to provide goods that are both competitively priced and cutting-edge.

NEW ENTRANTS IN THE AUTO MARKET OF PAKISTAN

We are all known that Japanese manufacturers Suzuki, Toyota, and Honda have dominated Pakistan's vehicle market. They are known as Pak Suzuki, Toyota Indus, and Honda Atlas Cars locally as a result of their affiliation with regional businesses. 

However, things are anticipated to change soon as new competitors enter Pakistan's car sector. Other well-known companies from across the world are preparing to take advantage of the chances that are currently accessible, keeping in mind the enormous potential of the local auto sector, which is based on the continuously rising consumer purchasing power.

Recently, South Korean automakers Hyundai Motor Company and Kia Corporation launched their vehicles in Pakistan. Recently, MG, a well-known British automaker with Chinese ownership, made its debut on the Pakistani auto market with its subcompact crossover lineup. 

You may also be familiar with Changan. Since its debut, this Chinese brand has exclusively sold minivans and numerous other utility vehicles in the local market. It wasn't until 2021 that it finally unveiled its first sedan, to be called "Alsvin." 

For a business like Changan, it was a ground-breaking move that put it in direct rivalry with many other top car companies on the market.

 

THE ECONOMIC POSITION

The Toyota Yaris and Honda City are direct competitors of Changan's tiny sedan, the Alsvin. Alsvin has more features than the latter options when the features are compared side by side. Since Changan is currently working to build its reputation in the market, it is now more concerned with pricing without sacrificing the qualities it delivers. It's one of the primary explanations for why the Changan is several thousand dollars less expensive than many other small sedans that directly compete with it.

CARS ENTIRELY "MADE IN PAKISTAN"

In Pakistan, there are a few local brands that are developing and marketing their own cars alongside foreign businesses that are expanding into the automobile sector to give consumers additional choices. Two notable examples in this regard are businesses like Regal Automobiles and United Auto Industries. 

United Bravo and Prince Pearl, are two 800cc small hatchback automobiles produced by these local manufacturers, respectively. These vehicles are even more economical than Pakistan's least expensive Suzuki Alto model, costing roughly PKR 10 lakh. 

 

What the PAMA stands for?

The Pakistan Automotive Manufacturers Association (PAMA), as its name suggests, is an influential organisation that represents the interests of Pakistan's automakers and other local businesses. 

The group operates under a licence from the Ministry of Commerce and complies with the Trade Organisations Ordinance of 2007. This association's main goal is to promote the expansion of the regional car industry. The association was established to represent the interests of the regional automakers and assemblers. The list of PAMA members is as follows: 

Pak Suzuki Motor Co. Ltd Indus Motor Co. Ltd.  Sigma Motors Ltd.  Hinopak Motors Ltd.  Ghandhara Nissan Ltd.  Master Motor Corporation Ltd.  Millat Tractors Ltd.  Atlas Honda Ltd.  Plum Qingqi Motors Ltd.  Fateh Motors Ltd.  Ravi Automobile Pvt. Ltd.  Sazgar Engineering Works Ltd.  Orient Automotive Industries Pvt. Ltd.  Eiffel Industries Ltd.  Yamaha Motor Pakistan Pvt. Ltd.  Al-Ghazi Tractors Ltd. United Auto Industries Pvt. Ltd. Hyundai Nishat Motor Pvt. Ltd.

PROJECTED DEVELOPMENT OF THE AUTOMOBILE INDUSTRY IN PAKISTAN 

The nation's vehicle industry is about to experience exponential expansion in light of the impending federal government policies, subsidies, and other efforts. In the coming years, local vehicle assembling and manufacturing, which currently produces 250,000 units yearly, will multiply many times over. The government is presently attempting to meet the goal of producing 1 million vehicles locally each year. 

Pakistan is currently working on its auto policy for the next five years, which will also include special incentives and waivers for hybrid and electric vehicles in the country to promote the concept of eco-friendly transportation, according to Pakistan's ambassador to China Moinul Haque.

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