Pakistan's Automobile Industry

Pakistani Automobile Industry is failing!

Pakistani Automobile Industry is in hot waters at the moment. 2023 is not a good year for Pakistani Automobile Industry. Enthusiasts should not expect any wonderful new vehicles or new brand launches this year. Here is why the Pakistani Automobile Industry is failing!

Pakistan’s Automobile Industry, History:

Initially, Pakistan was doing alright with respect to the automobile industry. Many foreign manufacturers were having joint ventures with local parties and developing vehicles here locally. Pakistan was the first Muslim state to have its localized jeep which was named Naya Daur. This was made in collaboration with Willy’s Jeeps.

Pakistan's Automobile Industry

Pakistan was the first Muslim country to have its motorcycle developed locally in collaboration with JAWA Motorcycles but it was abandoned due to uncertain reasons. In the early ’70s, Pakistan also developed its first car in collaboration with SKODA (named SKOPAK locally). The prototypes were developed and ready for the production run. But due to uncertain reasons (mainly dirty politics & uncertain conditions)

In the 80’s an engineer from Karachi started manufacturing low-cost vehicles under the name PROFICIENT. He was developing vehicles at lower costs and this was not acceptable to newly launched foreign companies in Pakistan. Under political pressure, the PROFICIENT was closed down!

Pakistan’s Automobile Industry Now:

After the ’80s our Automobile Industry is dipping its nose down. The manufacturing plants were set up but never the industry never flourished properly. Instead of being self-sufficient and focusing on local production, they started importing semi-finished or unfinished products, assembling them locally, and selling them in Pakistan. This made two major dents to Pakistan, all the foreign reserves were going out of Pakistan and local industry was not developing. With every dollar increase, our automobiles kept increasing. The real trouble started when the dollar rate exploded and now the situation is so worst that a 70cc locally made motorcycle costs above 110,000 rupees on the road!

What to do?

The only remedy to the problem is focusing on local production. We need to develop products locally, using all the local resources. This will help us in providing jobs for our fellow country men and stop foreign reserves going out of the country. This seems to be afar cry but this is what we have to do!

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