Over the past five years, the automotive industry of Pakistan has played a significant role in the economic growth and development of the industrial sector with extensive capacity build-up, both in vehicle assembly and spare parts production.
Automotive engineering is a driving force of large scale manufacturing, contributing US$ 3.6 billion to the national economy and engaging over 192,000 people in direct employment.
The aftermarket for spares has also witnessed immense expansion over the same period, with imported parts playing an important role in meeting local demand. The spare parts market is given further impetus by a total vehicle population of approximately 5.4 million.
Automotive engineering is a driving force of large scale manufacturing, contributing US$ 3.6 billion to the national economy and engaging over 192,000 people in direct employment.
The aftermarket for spares has also witnessed immense expansion over the same period, with imported parts playing an important role in meeting local demand. The spare parts market is given further impetus by a total vehicle population of approximately 5.4 million.
EMERGING SECTORS
TRUCKS:
Over the past ten years, road traffic has grown significantly and currently accounts for 96% of national freight traffic. Trucking has been declared an industry and special initiatives have been taken to modernize the trucking industry under the National Trade Corridor Improvement Program (NTCIP).
BUSES:
In Pakistan , 91% of the total national passenger traffic is highly dependent on buses . Urban Transport Schemes (UTS) have provided a healthy impetus to the production of buses, which has witnessed a growth of 15%. Many foreign manufacturers are also actively working to cater to the rising demand in the local market.
MOTORCYCLES:
Motorcycle assembling in Pakistan has undergone phenomenal expansion in the last five years with annual output crossing the 1 million mark in 2007-2008. In line with the increased production, the vendor and aftermarket industries have also shown steady growth over the years.
CNG-POWERED VEHICLES:
Pakistan has the second highest number of CNG-powered vehicles in the world with more than 1.55 million cars and passenger buses, constituting 24% of total vehicles in Pakistan with improved fuel efficiency and conforming to the latest environment regulations.
TYRES:
The rapidly growing number of vehicles and with the development of strong transportation network, the demand for tyres has risen significantly. The local demand of tyres is mainly catered by imports and the industry is now taking measures to introduce re-treading technology for cost-effectiveness.
GEARING UP THE AUTOMOTIVE INDUSTRY
Government of Pakistan has undertaken two major initiatives in the form of National Trade Corridor Improvement Program (NTCIP) and Auto Industry Development Programme (AIDP) for the development of the automotive industry in Pakistan.
Engineering Development Board (EDB) is actively implementing the AIDP to increase the GDP contribution of the automotive sector to 5.6%, boost car production capacity to half a million units as well as attract an investment of US$ 3 billion and reach an auto export target of US$ 650 million.
National Trade Corridor Improvement Program (NTCIP) is aimed at reducing the cost of trade and transport logistics and to bring the quality of services offered to international standards by strong infrastructure of roads and highways.
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