Pakistan's auto industry is struggling, with sluggish car sales, difficult access to auto financing, and a weakened economy. In response, the government is urging a strategic shift, pushing local manufacturers to prioritize domestic production and exports to boost the national economy.

The Details

Prime Minister Shehbaz Sharif met with leaders of the auto industry, urging them to take a more active role in driving Pakistan's economic growth. The meeting centered on increasing local car manufacturing and exports. Key figures in attendance included Toyota Pakistan CEO Ali Jamali and auto parts industry representative Aamir Allahwala, who shared their concerns and future plans with the Prime Minister.

Sharif emphasized the importance of ramping up domestic production and shifting towards manufacturing vehicles within Pakistan. He also highlighted the need for substantial auto exports to generate foreign income and support national development.

The Prime Minister stressed the implementation of the Auto Sector Deletion Policy, aimed at integrating Pakistan’s auto parts industry into the global supply chain. He reaffirmed the government’s commitment to supporting domestic exports through various initiatives.

Car Production

According to the Pakistan Automotive Manufacturers Association (PAMA) report, local passenger car production decreased by 32% in FY24, with 62,475 units produced compared to 91,560 units in the same period last fiscal year.

The two-wheeler industry faced similar challenges, experiencing a 7% decline in production. Output fell to 921,952 units from 987,580 units the previous fiscal year. In contrast, three-wheeler production saw a significant increase, rising by 25% to 19,735 units in FY24, up from 15,820 units last year.

In the commercial sector, trucks and buses experienced substantial declines in production, dropping by 39% and 50%, respectively, to 1,694 and 323 units.